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The University of Iowa Foundation requires a gift of $1,000,000 to name a professorship after you. A typical professorship pays a faculty member a portion
The University of Iowa Foundation requires a gift of $1,000,000 to name a "professorship" after you. A typical professorship pays a faculty member a portion of their salary and benefits. If the professorship is expected to pay out $50,000 next year and grow at the recent inflation rate into indefinite future. If inflation has averaged 2.84% since 1982 (source: Bureau of Labor Statistics, 12/04) and this rate is expected to continue, what return does the Foundation need to get on their investments?
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