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How much will the yearly scholarship be for

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Reference no: EM132126263

As a wealthy graduate of the University, you have decided to give back to the University in the form of a scholarship. You have decided to donate a one-time gift of $500,000 that will be invested at a rate of 5.5% per year. The scholarship amount will grow at the rate of inflation expected to remain at 3% per year and the scholarship will be issued yearly forever. How much will the yearly scholarship be for?

Reference no: EM132126263

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