Fall07:How much will Grace have to donate so that the endowment fund never runs out?

Grace, a retired
librarian, would like to donate some money to her alma mater to endow a $4,000
annual scholarship. The university will manage the funds, and expects to earn 7
percent per year. How much will Grace have to donate so that the endowment fund
never runs out?
Topic: Perpetuities
Level of difficulty: Easy