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A donor makes a multi-year pledge to provide $10,000 a year for the next 10 years for the organizations unrestricted use. The net present value
A donor makes a multi-year pledge to provide $10,000 a year for the next 10 years for the organizations unrestricted use. The net present value of the annuity as of the date of the gift is $55,000. In the next year, $10,000 is collected. The net present value of the remaining 9 payments is $49,500.
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