A wealthy benefactor just donated some money to the local college. This gift was established to provide scholarships for worthy students

65.

Your grandfather left you an inheritance that will provide an annual income for the next 10 years. You will receive the first payment one year from now in the amount of $3,000. Every year after that, the payment amount will increase by 6 percent. What is your inheritance worth to you today if you can earn 9.5 percent on your investments?    A.  $23,774.36 B.  $28,666.67 C.  $33,121.21 D.  $35,464.12 E.  $38,908.17

66.

You just won a national sweepstakes! For your prize, you opted to receive never-ending payments. The first payment will be $12,500 and will be paid one year from today. Every year thereafter, the payments will increase by 3.5 percent annually. What is the present value of your prize at a discount rate of 8 percent?    A.  $166,666.67 B.  $248,409.19 C.  $277,777.78 D.  $291,006.12 E.  $300,000.00

67.

A wealthy benefactor just donated some money to the local college. This gift was established to provide scholarships for worthy students. The first scholarships will be granted one year from now for a total of $35,000. Annually thereafter, the scholarship amount will be increased by 5.5 percent to help offset the effects of inflation. The scholarship fund will last indefinitely. What is the value of this gift today at a discount rate of 9 percent?    A.  $37,500 B.  $350,000 C.  $800,000 D.  $1,000,000 E.  $1,050,750