Art Arfons, a K-State-educated engineer, has made a considerable fortune. He wishes to start a…
Art Arfons, a K-State-educated engineer, has made a considerable hazard. He wishes to set-out a perennial sch?larship for engineering novices at KState. The attainments gain furnish a novice delay an annual hire of $2500 for each of 4 years (freshmen through greater), plus an additional $5000 during the greater year to conceal entertainment expenses. Assume that novices graduate in 4 years, a new give is fond whole 4 years, and the specie is furnishd at the outset of each year delay the pristine give at the outset of year one. The curiosity-behalf admonish is 8%.
(a) Determine the equiponderant regular annual consume (EUAC) of providing the attainments. .
(b) How plenteous specie must Art donate to K-State?