The scholarship amount will grow at the rate of inflation


As a wealthy graduate of the University, you have decided to give back to the University in the form of a scholarship. You have decided to donate a one-time gift of $500,000 that will be invested at a rate of 5.5% per year. The scholarship amount will grow at the rate of inflation expected to remain at 3% per year and the scholarship will be issued yearly forever. How much will the yearly scholarship be for?

Solution Preview :

Prepared by a verified Expert
Business Economics: The scholarship amount will grow at the rate of inflation
Reference No:- TGS02918393

Now Priced at $10 (50% Discount)

Recommended (91%)

Rated (4.3/5)