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A university department is considering setting up a scholarship of $15,000, increasing each year at the rate of inflation. The plan is to grant it

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A university department is considering setting up a scholarship of $15,000, increasing each year at the rate of inflation. The plan is to grant it to a deserving student every year in perpetuity. What is the amount of money the department needs to invest today to be able to do this? The rate of return is 8%, and the expected inflation is 2% $750,000 None of these $250,000 $187,500

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