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You want to endow an annual graduation party at your alma mater. You want the event to be a memorable one, so you budget $30,000

  • You want to endow an annual graduation party at your alma mater. You want the event to be a memorable one, so you budget $30,000 per year forever for the party.

  • If the university earns 8% per year on its endowment pool, and if the first party is in one years time, how much will you need to donate to endow the party?

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