Jasmine wants to fund a scholarship in honour of her parents that will pay $15 000 per year to a deserving student, starting next year. She wants the annual amount paid to the student to grow by 2% per year to keep up with student fee increases. Given that the interest rate she can earn on her investment is 6%, how much does she need to fund this perpetuity?

Jill Gates wishes to establish a perpetual scholarship fund at the Business School with the first annual scholarship to be paid in one year. The amount of the scholarship will initially be $40,000 but will then increase by 3% p.a. in line with expected inflation. How much is required to establish the fund if it is invested at 5.5% p.a.?

How much money is needed to establish a scholarship fund paying $50,000 annually forever if the fund will earn interest at 6% per year and the first payment will be made: (a) At the end of the first year? (b) Immediately? (c) 5 years from now?

Hale College predicts that in 1818 years it will take $200,000$⁢200,000 to attend the college for four years. Hannah has a substantial amount of cash and wishes to invest a lump sum of money for her child’s college fund. How much should Hannah put aside in an account with an APR of 12%12% compounded monthly in order to have $200,000$⁢200,000 in the account in 1818 years? Round your answer to the nearest cent, if necessary.

A university alumni group wants to provide a semiannual scholarship to current students. If the scholarship amount of $400 is awarded semiannually beginning 6 months from now, and the fund earns interest at a rate of 4% per year compounded continuously, find the amount of the endowment the alumni are required to make now.

A parent saving for their child’s college tuition deposits $1,750 into an account that earns % interest per year. The money is left in the account for 2 years. Find the maturity value.