Question

You have saved EGP 2,000,000 and are intending to endow it to AUC in the form of a prize or scholarship. Please prepare a short email to the Board of Trustees of AUC explaining the objective of your endowment and for whom it is dedicated and the annual value. The current interest rate is 9%.

Answer 1

The annual value = PV x r = 2,000,000 x 9% = EGP 180,000

a short email to the Board of Trustees of AUC:

Dear Trustees,

Trust this mail finds you all in the best of your conditions.

This is to inform you that I intend to endow an amount of EGP 2,000,000 to AUC in the form of a prize of scholarship. The money has totally come out from my savings.

I wish that AUC uses this endowment to support the cost of edducation and accomodation of an academically deserving candidate. This support must go to a deserving candidate who is in need of financial support. This scholarship must go to his credit annually. The annual amount at current interest rate of 9%, works out to be EGP 18,000. This scholarship should continue in perpetuity.

I really wish you will like this idea. We cn discuss this further, if need be as per convenience. My contact details are available in my signature.

Thanks,

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