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You decide to give SCU an endowment a lump of 1750K. You would like to specify that this will pay out an income stream $
You decide to give SCU an endowment a lump of 1750K. You would like to specify that this will pay out an income stream $ R K per year, with a continuously compounded annual increase of 5% continuing forever. Assume that you can lock in an interest rate of 9%. What value of R would match your lump sum donation of $ 1750 K?
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