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You want to establish an endowment fund that will pay a Lerner College professor $135,000 per year forever starting in 12 years from today.

You want to establish an endowment fund that will pay a Lerner College professor $135,000 per year forever starting in 12 years from today. The fund will earn an interest rate of 2.6%. How much must you donate today? If you have a student loan with an APR of 9% that has monthly payments, what is the EAR that you are paying?

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