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A benefactor proposes to set up an endowment for student scholarship at the Business School. The proposal is to provide an initial scholarship of $15,000

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A benefactor proposes to set up an endowment for student scholarship at the Business School. The proposal is to provide an initial scholarship of $15,000 (at the end of the first year), and subsequent annual scholarship that increases by 3% each year. Suppose the interest rate earned by the endowment is 4%. How much should the benefactor donate today? (6 points)

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