Five scholarships every year

    An alumni decided to donate $2.5 million to the local community college to fund scholarships in perpetuity for students. The school intends to make five scholarships every year starting one year from today. The scholarships are expected to grow at 3% per year, which corresponds to the expected growth rate of tuition. In addition, the funds will be invested by the endowment, and they expect to generate a return of 8% per year. How large are the initial scholarships that will be paid one year from today?