Ivanna Muny, MSU-educated technologist, has made a considerable fortune. She wishes to start a perpetual scholarship for technology students at Missouri State. The scholarship will provide a student with an annual stipend of $2500 for each of 4 years (freshman through senior), plus an additional $5000 during the senior year to cover entertainment expenses. Assume that students graduate in 4 years, a new award is given every 4 years, and the money is paid at the beginning of each year with the first award at the beginning of Year 1. The interest rate is 8%.

(a) Determine the equivalent uniform annual cost (EUAC) of providing the scholarship.

Reasoning/Work

Answer:

Reasoning/Work:

(b) How much money must Ivanna donate to MSU?