Please provide the intermediate steps in the answers in an understandable way, DO NOT use Excel! Here are the correct answers: a) last student receive the scholarship in 2033. This scholarship in 2033 amount to 32,619,33 . b) PV of annuity in one year time = 218,689,90 . PV today (to raise today) = 208,276,10 .

You and your fellow Master Program colleagues want to search for individuals and corporate sponsors in order to raise capital today for an endowment (funding) that allows you to create a scholarship. This scholarship will amount to 25 thousand, to be paid to one suitable student, per year. The scholarship will be paid for the first time two years from now and you want it to last for 10 years, so that ten students (one per year) are impacted by you. Furthermore recognizing the effects of inflation you want the amount paid to grow at 3% per annum after it is paid for the first time. a) (1 point) If you set this scholarship today, under these conditions, in what year will the tenth and last student receive the scholarship? How much will the scholarship amount to in that year? b) (2 points) Assuming the University will manage your endowment and achieve a 5% annual return, how much do you need to raise today