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Hannah wants to create a scholarship fund by saving for several years before the fund starts making annual scholarship payments forever. She plans to save
Hannah wants to create a scholarship fund by saving for several years before the fund starts making annual scholarship payments forever. She plans to save $192,000 per year for 6 years. Her first savings contribution to the fund is expected later today. What is the expected amount of the scholarship payment that the fund will make in 7 years if the fund is expected to earn 7.30 percent per year, make scholarship payments that grow annually by 1.80 percent forever, and make its first scholarship payment in 7 years?
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