Determine the equivalent uniform annual cost

Reference no: EM132199783

Question - LaQuesha Jackson has made a considerable fortune. She wishes to start a perpetual scholarship for engineering students at her school. The scholarship will provide a student with an annual stipend of $10,000 for each of 4 years (freshman through senior), plus an additional $5000 during the senior year to cover job search expenses. Assume that students graduate in 4 years, a new award is given every 4 years, and the money is paid at the beginning of each year with the first award at the beginning of Year 1. The interest rate is 10%.

(a) Determine the equivalent uniform annual cost (EUAC) of providing the scholarship.

(b) How much money must LaQuesha donate?

Reference no: EM132199783

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