You would like to endow a scholarship. In-state tuition is currently $10,000, payable at the end of each year. Tuition will grow by 3% per year. The opportunity cost of capital is 5%. How much money should you invest today to endow a scholarship that pays full tuition once every year starting 10 years from now?

You would like to endow a scholarship. In-state tuition is currently $10,000, payable at the end of each year. Tuition will grow by 3% per year. The opportunity cost of capital is 5%. How much money should you invest today to endow a scholarship that pays full tuition once every year starting 10 years from now?

You would like to endow a scholarship. In-state tuition is currently $10,000, payable at the end of each year. Tuition will grow by 3% per year. The opportunity cost of capital is 5%. How much money should you invest today to endow a scholarship that pays full tuition once every year starting 10 years from now?