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On December 3 0 , you decide to make a $ 1 0 0 , 0 0 0 charitable donation to the University of Oregon.

On December 30, you decide to make a $100,000 charitable donation to the University of Oregon. If you are in the 37% tax bracket and you expect to itemize your deductions, how much will you save in taxes for the current year? If you deposit that tax savings in a mutual fund for the next 10 years earning an expected rate of return of 8%, what will be the future value of that account in ten years? If you then funded a scholarship at UP with the future value amount (in ten years), assuming the fund continued to earn 8%, how much would the annual scholarship be over the following ten years (assuming the same amount each year)?

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