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What amount of growth is feasible each year

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Question - A scholarship endowment has a balance of $500,000. Five, 1-year scholarships are to be awarded each year, with the first disbursement of $2,500 per scholarship coming one year from now. The endowment earns 6% annual interest. If the scholarships are to be offered in perpetuity and the scholarship board wishes to raise the amount of the scholarships by a constant percentage amount each year, what amount of growth is feasible each year?

Reference no: EM132747583

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