Your Company wish to establish a PhD University Scholarship of GHc 2,000 paid at the end of each year for deserving students as an alumnus at the School you attended. You would like to make a lump-sum...

Your Company wish to establish a PhD University Scholarship of GHc 2,000 paid at the end of each year for deserving students as an alumnus at the School you attended. You would like to make a lump-sum gift to the school to fund the scholarship into infinity.  The school's treasurer assures you that they will earn 7.5% every year continually.

Required:

a) How much must your company give the school today to fund the proposed scholarship programme?

b) If you allow the amount of the scholarship to increase annually after the first end of year by 3% per year, how much must you give the school now to fund scholarship programme?