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Your graduating class has decided to endow a chair for a worthy young assistant professor of finance. The University suggests an endowment that generates $100,000
Your graduating class has decided to endow a chair for a worthy young assistant professor of finance. The University suggests an endowment that generates $100,000 a year forever. The discount rate is 15%. If your class pledges $150,000 a year (starting next year), how long will it take to have enough to endow the chair?
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