Mrs. McTavish wants to establish an annual $5000 scholarship in memory of her husband. The first scholarship

Question:

Mrs. McTavish wants to establish an annual $5000 scholarship in memory of her husband. The first scholarship is to be awarded two years from now. If the funds can earn 6.25% compounded annually, what amount must Mrs. McTavish pay now to sustain the scholarship in perpetuity?

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