A donor wishes to endow an engineering scholarship at USYD. The
endowment may be made by a lump-sum deposit to a special foundation
set up by the university for such purposes. The foundation director
believes that its funds will earn at least 8% interest per year,
tax free, for the indefinite future.
The scholarship is to provide $10,000 per year. On the assumption
that the scholarship will start at the end of the first year and
continue forever, what endowment must the donor make now?