Engineering Economics question - PLEASE HELP ASAP

Question

Art Arfons, a K-State-educated engineer, has made a considerable fortune. He wishes to start a perpetual scholarship for engineering students at K-State. The scholarship will provide a student with an annual stipend of $2500 for each of 4 years (freshman through senior), plus an additional $5000 during the senior year to cover entertainment expenses. Assume that students graduate in 4 years, a new award is given every 4 years, and the money is paid at the beginning of each year with the first award at the beginning of Year I. The interest rate is 8%.

(a) Determine the equivalent uniform annual cost (EUAC) of providing the scholarship.

(b) How much money must Art donate to K-State?

Answer 1

A) EUAC = 2500*(3.3125)+5000*(0.7350) =11956

Convert to annual cost. 11956*(0.3019) = $3,609 (EUAC).

B) P = A/I = (3609/0.08) = 45,118.