321.2
You are endowing a scholarship and you want the first scholarship of $10,000 to be paid 3 years from today. After that, you want the amount of the scholarship to grow by 3% and you can earn a nominal return of 9% on your money, what will it cost to endow the scholarship today? (3 pts)
Does delaying the start of the scholarship to year 3 positively or negatively impact the cost? WHY?
Does making the scholarship grow positively or negatively impact the cost? WHY?