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You decide to establish a memorial foundation. Specifically, you plan for the recipient to receive $3,500 the first year it pays out, but for the
You decide to establish a memorial foundation. Specifically, you plan for the recipient to receive $3,500 the first year it pays out, but for the payout to increase by 6% every year thereafter.
Assume the University earns a 8% rate of return on its endowment. If you gift the money today and the first payout is expected to be in 3 years, how much must your donation be?
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