A wealthy benefactor wants to establish an endowment to pay forever the salary of one university faculty member and the tuition, fees, and books for ten undergraduates. The salary for the endowed faculty member is $96, 000 per year, payable monthly, commencing at the end of the first month of employment. Tuition, fees, and books total $2, 000 per student per quarter, payable at the start of each quarter. Assume the scholarships will be awarded for the summer quarter as well as the three academic year quarters. If the endowment earns 6% compounded monthly, what amoun

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A: Present Value = pv = $6000Interest Rate = r = 2%Time = t = 10

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A:

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