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You have decided to endow Faculty of Business, Dokuz Eylul University with a scholarship. It is expected to cost $3,000 per year to attend the

You have decided to endow Faculty of Business, Dokuz Eylul University with a scholarship. It is expected to cost $3,000 per year to attend the university into perpetuity. You expect to give the university the endowment in 9 years and will accumulate it by making equal annual (end-of-year) deposits into an account. The rate of interest is expected to be 13% for all future time periods.

a. How large must the endowment be?

b. How much must you deposit at the end of each of the next 9 years to accumulate the required amount?

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