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How much would you need to gift to the university today to establish a scholarship fund that pays out $ 2 5 0 0 0

How much would you need to gift to the university today to establish a scholarship fund that pays out $

25000

in scholarships in one year and grows the scholarship payout by

2 %

per year forever? Assume that the university endowment earns

7 %

per year on its investments.

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