A university alumni group wishes to provide an annual schola
A university alumni group wishes to provide an annual scholarship in the amount of $1100 beginning next year. If the scholarship fund will earn an interest rate of 8%/year compounded continuously, find the amount of the endowment the alumni are required to make now. (Round your answer to the nearest dollar.)
Solution
endowment = 1100/0.08 = 13750 dollars