How much would have to be donated to endow a chair

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Problem 1: An endowed faculty chair is created when a benefactor makes a donation of sufficient size that earnings from the donation pay the salary and benefits of a professor forever. How much would have to be donated to endow a chair in your name if the salary and benefits were $100,000 and the interest rate was ?4%? Assume that the first salary? (with benefits) is paid in one? year's time.

Reference no: EM132997848

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