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A wealthy alumnus endows a chaired professorship at her graduate school. At an annual salary of $150,000 and 5% salary increase per year, how much

A wealthy alumnus endows a chaired professorship at her graduate school. At an annual salary of $150,000 and 5% salary increase per year, how much does she need to contribute now if the funds can be invested at 10% p.a.?

a. 3M

b. 1.5M

c. 3.5M

d. 5M

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