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Baffin College has an endowment that pays one lucky student $7,500 a year forever; of course, it is a different student each year. Long-term yields

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Baffin College has an endowment that pays one lucky student $7,500 a year forever; of course, it is a different student each year. Long-term yields are 10 percent. How much is currently required to fund the endowment? 1) $84,000 2) 585,000 3) $75,000 4) $89,000 5) 574,000

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