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Finance (Perpetuity) question. (Nominal interest rate is used) Q: You have decided to donate a one-time gift of $500,000 to a university in the form

Finance (Perpetuity) question. (Nominal interest rate is used)

Q: You have decided to donate a one-time gift of $500,000 to a university in the form of a scholarship that will be invested at a rate of 5.5% /yr. The scholarship amount will grow at the rate of inflation expected to remain at 3% /yr, and the scholarship will be issued yearly forever. How much will the yearly scholarship be for?

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