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Hi there.
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So for this problem, we're told that a university, a lot in the group, which is to provide an annual scholarship in the amount of $1 ,500 beginning next year.
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If this scholarship fund will earn an interest rate, and that interest rate is equal to 8%, that in decimals is just 0 .08.
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So then the amount for this is 1 ,500, and this is compounding continuously.
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So we need to find the one of the endowment that only are required to make now.
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So we need to find that principal amount that is labeled that as b.
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Now, since this is continuously compounded, so then that will be that a, which is the amount to be obtained, is equal to the principal amount, this times the exponential of the rate times the time...