To establish a fund that will provide a scholarship of $3,000 per year indefinitely, with the first

Question:

To establish a fund that will provide a scholarship of $3,000 per year indefinitely, with the first award to occur now, how much must a donor deposit if the fund earns
a. 6% per period?
b. 8% per period?
Required:
Calculations of present and (or single payments and for annuities, to make the exercises more realistic, we do not give specific guidance with each individual exercise.

Future Value
Future value (FV) is the value of a current asset at a future date based on an assumed rate of growth. The future value (FV) is important to investors and financial planners as they use it to estimate how much an investment made today will be worth...