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You want to start an endowment today that will pay for a finance lab at MSUB from next year. While next year the required amount
You want to start an endowment today that will pay for a finance lab at MSUB from next year. While next year the required amount for such a finance lab is $20,000, the amount will rise every year by 2% due to inflation. If the endowment is expected to make 6% annually, find out how much the endowment fund should be if you want to start it today. This is a growing perpetual cash flow problem.
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