A Couple, Both Engineering Alums from a Reputable Engineering School

A couple, both engineering alums from a reputable engineering school has decided to set up an endowment to help pay for 4 engineering scholarships at the rate of $X per year starting year 21 perpetually. If $200,000 is invested in the trust today and if it earns a very good rate of return of 12% per year, what will the amount of each scholarship starting year 21?

A) $49,756.2
B) $57,876
C) $62,110.5
D) $41,932

Correct Answer:

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