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You have $200,000 to endow a university scholarship in perpetuity. You expect costs to rise at 5% each year and want the payment to grow
You have $200,000 to endow a university scholarship in perpetuity. You expect costs to rise at 5% each year and want the payment to grow by that amount each year. You can earn 8% in the market. The first payment will occur one year from today. How much will that first payment be?
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