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Q. After graduating from graduate school you create it big-all because of your success in financial management. You make a decision to award a scholarship for needy finance students that will give $3,000 each year indefinitely, beginning one year from now. How much should be deposited today to fund scholarship fund under given conditions?
a) The interest rate is 10% compounded annually.
b) The interest rate is 8% compounded annually.
c) For both 10 also 8%, if everything remains same except that first disbursement will not be made until three years from now.
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