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A college alumni club has decided to establish a scholarship fund that will provide grants of $5000 a year for 25 years, with the first
A college alumni club has decided to establish a scholarship fund that will provide grants of $5000 a year for 25 years, with the first grants to be made a year from now, (a) What should be the sum placed in the fund if the interest on it is earned at the rate of 8 percent compounded annually? (b) What is the total amount of scholarship aid the fund will provide over its life?
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