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Question - A small, private college is starting a scholarship fund. The college's fund managers expect the investments in the fund will earn an average annual return of 6.00%.
a) If the college deposits $11,500 into the scholarship fund on the first day of each month, how much money will be in the fund in 15 years?
b) After those 15 years have passed, how much in scholarship money can the college pay out on the first of each month for the next 20 years? (Assume the college will cease deposits into the fund.)
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