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You would like to establish a trust fund that would provide annual scholarships of $100,000 today and then grow at 1.5% forever (i.e. at time
You would like to establish a trust fund that would provide annual scholarships of $100,000 today and then grow at 1.5% forever (i.e. at time 1 there will be a $101,500 scholarship award). How much would you have to deposit today in one lump sum to achieve this goal if you can earn a guaranteed 6 percent rate of return?
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