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# Answer to Question #215737 in Finance for glch

Question #215737

You have decided to endow Faculty of Business, Dokuz Eylul University with a scholarship. It is expected to cost ​$6,000 per year to attend the university into perpetuity. You expect to give the university the endowment in 6 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 6 years to accumulate the required​ amount? 1 Expert's answer 2021-07-13T13:24:06-0400 a) endowment will be "PV=\\frac{CF}{r}" "=\\frac{6000}{0.13}" "=46153.8462 dollars" b)we need to accumulate$46,153.8462 in 6 years

"FV=PV(1+i)^{6}"

"=6000(1.13)^6"

"=12491.71dollars"

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