Donor need to contribute today in order to fund scholarship

Assignment Help Financial Management

Reference no: EM13921299

A University has been approached by a wealthy donor who is interested in providing $500,000 in scholarships each year in perpetuity for finance majors. After consulting with the University's investment firm it is determined that the donation can be invested at a 7% rate.

How much will the donor need to contribute today in order to fund the scholarship?

Reference no: EM13921299

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