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When Alfred Nobel died, he left the majority of his estate to fund five prizes, each to be awarded annually in perpetuity starting one year

When Alfred Nobel died, he left the majority of his estate to fund five prizes, each to be awarded annually in perpetuity starting one year after he died. If he wanted the cash award of each of the five prizes to be $45,000 and his estate could earn 7% per year. And, suppose the cash award will grow by 4% per year. How much would he need to set up the prizes today?

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