After graduating from the University of Adelaide, Lee was so pleased with the amount of usefuland…

After graduating from the University of Adelaide, Lee was so pleased with the amount of usefuland interesting knowledge she gained that she convinced her parents, who were wealthy alumni ofthe university, to create an endowment. The endowment is to allow three needy students to starttheir undergraduate studies each year in perpetuity. The guaranteed annual cost of tuition andbooks for the course is $6000 per student. The endowment will be created by making a singlepayment to the university. The university expects to earn exactly 5.10%per year on these funds.a. How large an initial single payment must Marla’s parents make to the university in oneyear to fund the endowment?b. However, following the Covid-19 pandemic, inflation has surged, leading to a growthin the prices of books and future tuition fees. If the university estimates that the costwill rise by 0.5% per year thereafter, how much should they donate now to fund theendowment?