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You want to endow a scholarship that will pay $12,000 per year forever, starting one year from now. If the school's endowment discount rate is
You want to endow a scholarship that will pay $12,000 per year forever, starting one year from now. If the school's endowment discount rate is 7 % what amount must you donate to endow the scholarship? How would your answer change if you endow it now, but it makes the first award to a student 10 years from today?
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