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.?

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?

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?

How much money is needed to establish a fund paying $80,000 annually forever with the first payment made immediately if the fund will earn interest at 5% p.a. compounded semi-annually?

Today you want to endow a scholarship that will pay ​$5 000 per year​ forever, starting 10 years from now. If the​ school's endowment discount rate is 7​%, what amount must you donate to endow the​ scholarship?

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.