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You decide to give SCU an endowment that will pay out $50 K per year forever, with a continuously compounded annual increase of 3%. Assuming
You decide to give SCU an endowment that will pay out $50 K per year forever, with a continuously compounded annual increase of 3%. Assuming that you can lock in an interest rate of 5%, figure out how much this endowment would cost. What is the total value of this income stream?
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