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Andreanna wants to fund a scholarship that will be given annually for 100 years starting at t=5 and going through t=104. The amount of the
Andreanna wants to fund a scholarship that will be given annually for 100 years starting at t=5 and going through t=104. The amount of the scholarship each year should have the same purchasing power as $1000 has today. Inflation is expected to be 3% per year. The money will be in an account earning 7 percent annually. How much must be put into the account today to fund this scholarship? (Round to the nearest dollar throu2hout.) a. $28,333 b. $21,615 c. $20,201 d. $20,184 e. $26,547
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