Fund starts making annual scholarship payments forever

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Reference no: EM131978756

April wants to create a scholarship fund by saving for several years before the fund starts making annual scholarship payments forever. She plans to save 19,600 dollars per year for 3 years. Her first savings contribution is expected later today. How much can the fund be expected to provide each year for scholarships if the fund is expected to earn 11.02 percent per year, make equal scholarship payments forever, and make its first scholarship payment in 4 years?

Reference no: EM131978756

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