Order to endow this basketball scholarship

Assignment Help Financial Management

Reference no: EM131825889

You think it would be really neat to walk out on the court at half time of an Illinois home basketball game to present the Athletic Association with a check to endow a basketball scholarship. Your plan is to do this 25 years from today. By then, The Athletic Association estimates they will need an amount equal to the present value at 4.5% of a perpetuity paying $45,000 a year in order to endow this scholarship. Undaunted, you decide to try to meet this goal by making 25 equal beginning of year deposits that will earn 8.5% compounded annually. how large of an annual deposit must you take in order to endow this basketball scholarship.

Reference no: EM131825889

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