Intersted in starting scholarship fund

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Reference no: EM131169439

Your school is intersted in starting a scholarship fund. Each scholarship will be $500 and they anticipate funding 10 students each year. All scholarships are awarded at end of year. The organization plans to provide a total of 50 scholarships, with the 1st scholarships awared at the end of the 4th year. How much would the organization need to deposit today(1 lump sum deposit) to fully fund scholarships for these 50 students? Assume that the school can receive a return f 6%(compounded annually) on their investment.

Reference no: EM131169439

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