Question
Sabina wants to establish a charitable foundation that will make annual scholarship payments of $51,000 per year forever. Sabina wants the foundation to make the
Sabina wants to establish a charitable foundation that will make annual scholarship payments of $51,000 per year forever. Sabina wants the foundation to make the first annual $51,000 scholarship payment in 10 years from today and she wants annual scholarship payments of $51,000 to continue every year after the first payment. To fund the foundation, Sabina plans to make equal annual donations to the foundation for 9 years. How much does Sabina need to donate to the foundation each year for 9 years to have exactly enough in the foundation to make the planned annual scholarship payments if she makes her first donation to the foundation today, all donations to the foundation are equal, and funds held by the foundation are expected to earn 12.68 percent per year?
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