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What will the award be in the first year

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Question - You will give $100,000 dollars for a scholarship. Every year for all time, the scholarship will pay an award to one lucky student. These awards are schedule to start next year. To keep up with the rising cost of tuition, the award will grow at a rate of 4% a year after the first year. If the university will invest your endowment in a savings account that earns 5.1% interest, what will the award be in the first year?

Reference no: EM133017856

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