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What should be the size of the initial endowment

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Question - San Diego High School would like to start an athletic program. The program will cost $500,000 per year and the high school is expected to raise enough money for the first 5 years via an endowment. Assuming payments are made at the end of each year and the interest rate is 7% per year, what should be the size of the initial endowment?

Reference no: EM132917003

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