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Could you explain it step by step? A one-time gift to your college will provide $25,000 in scholarship funds next year with that amount increasing

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A one-time gift to your college will provide $25,000 in scholarship funds next year with that amount increasing by 2 percent annually thereafter. If the discount rate is 5.5 percent, what is the current value of this perpetual gift? Multiple Choice $748,602.49 $726,849.29 C714R571

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