You want to endow a scholarship that will pay

$12,000

per year forever, starting one year from now. If the school's endowment discount rate is

8%,

what amount must you donate to endow the scholarship?

The amount you must donate is

(Round to the nearest cent.)

uppose the interest rate is

4.3%.

a. Having

$300

today is equivalent to having what amount in one year?b. Having

$300

in one year is equivalent to having what amount today?c. Which would you prefer,

$300

today or

$300

in one year? Does your answer depend on when you need the money? Why or why not?

a. Having

$300

today is equivalent to having what amount in one year?It is equivalent to

$nothing.

(Round to the nearest cent.)b. Having

$300

in one year is equivalent to having what amount today?It is equivalent to

$nothing.

(Round to the nearest cent.)c. Which would you prefer,

$300

today or

$300

in one year? Does your answer depend on when you need the money? Why or why not?"Because money today is worth more than money in the future,

$300

today is preferred to

$300

in one year. This answer is correct even if you don't need the money today, because by investing the

$300

you receive today at the current interest rate, you will have more than

$300

in one year."Is the above statement true or false?

True

False

. (Select from the drop-down menu.)