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You have decided to endow a scholarship at School in order to help future students pursue their studies. The endowment will provide funding to students

You have decided to endow a scholarship at School in order to help future students pursue their studies. The endowment will provide funding to students in the form of annual payments in perpetuity. The first scholarship will be awarded next year in the amount of $6,000. Thereafter, you expect subsequent scholarships to increase by a rate of 1% per year. If the appropriate discount rate is 5% per year, how much money should you donate today?

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