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You are willing to donate $ 1 , 0 0 0 , 0 0 0 to your alma mater. What will be the annual endowment

You are willing to donate $

1, 000, 000

to your alma mater. What will be the annual endowment amount that you can commit for perpetuity? What will be the donation amount that you can commit if you instead choose to donate for

20

years? The rate of interest is

5 % .

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