Business Math Lesson 15: perpetuities, part 2
Channel: Amy Goldlist
Date: 2021-05-27

A wealthy BCIT alumnus has decided to make an endowment to the School of Business to fund an annual scholarship for the best business math student.  She will donate $15,000 and the funds will be invested at 6.6% effective. 

(a)   How much will the annual scholarship be if the first scholarship is in one year?

(b)   If they decide to give out the first scholarship today, how much will the alumnus have to donate to keep the same scholarship from part (a).

(c)   If she decides to keep her endowment at $15,000, how much will the annual scholarship be if the first scholarship is today?