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Emily wants to create a scholarship fund by saving for several years before the fund starts making annual scholarship payments forever. She plans to save
Emily wants to create a scholarship fund by saving for several years before the fund starts making annual scholarship payments forever. She plans to save $88,000 per year for 6 years. Her first savings contribution is expected in 1 year. How much can the fund be expected to provide each year for scholarships if the fund is expected to earn 9.20 percent per year, make equal scholarship payments forever, and make its first scholarship payment in 7 years?
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