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Your high school guidance counsellor encouraged you to follow your dream and learn a trade following high school. You became a licensed mechanic, opened your own shop which later franchised and you became independently wealthy. You decided to create bursary at the high school to be given to a student planning to pursue a trade following high school. You want to give a lump sum amount that would generate a $3,000 bursary per year into perpetuity.
Required:
Problem 1: Assuming an investment rate of 5%, how large must the lump sum amount be?
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