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Find what amount must donate to endow the scholarship

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Reference no: EM132828527

You want to endow a scholarship that will pay $9,000 per year forever, starting one year from now.

Problem a) If the school's endowment discount rate is 5%, what amount must you donate to endow the scholarship?

Problem b) How would your answer change if you endow it now, but it makes the first award to a student 10 years from?today?

Reference no: EM132828527

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