1. Trisha Tang is the Business Manager of RMITs Computer Science Centre. One of Trishas responsibility is to engage a range of philanthropic bodies to fund the Centres ongoing maintenance expenses for their facilities. Currently, Trisha is seeking contributions to an endowment fund to pay for the ongoing maintenance expenses of their Artificial Intelligence Laboratory. The concept of the endowment fund is that the funds will be invested and the returns would be sufficient to cover the annual maintenance expenses estimated to be 5% of the original investment of $5 million in setting up the Laboratory.

1. Assuming that the Endowment amount will be invested in a Fund that returns 6.5% per annum, how much should Trisha seek?
2. After getting an answer to the question above, it has been pointed out to Trish that the annual inflation of 3% will increase maintenance costs. Recalculate the Endowment amount needed to cover the Professors increasing salary amount.