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How large will the annual payment be

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Question - You decided to donate $400,000 to your college for a perpetual annual named scholarship. The college's discount rate is 7%. You donate the money today, but you ask the college to delay the scholarship payment so that the first scholarship payment is made 10 years from today. Each and every annual scholarship payment after that will be the same. How large will the annual payment be?

Reference no: EM132876057

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