You have decided to endow your favorite university with a scholarship. It is expected to cost $ 7,000 per year to attend the university into perpetuity. You expect to give the university the endowment in 10 years and will accumulate it by making equal annual (end-of-year) deposits into an account. The rate of interest is expected to be 14% for all future time periods.

a) How large must the endowment be? The endownment will be? Round to nearest cent

b) How much must you deposit at the end of each of the next 10 years to accumulate the required amount?

2) Determine the equal, annual, end-of-year payment required each year over the life of the loan shown in the following table to repay it fully during the stated term of the loan.

Priciple $ 9,000 Interest Rate 8% Term of Loan (years) 25

a) The amount of the equal, annual, end-of-year payment, CF, is ? Round to nearest cent