You want to endow a scholarship that will pay $13,000 per year forever, starting one year from now. If the school's endowment discount rate is 8%, what amount must you donate to endow the scholarship

Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications
Section: Chapter Questions
Problem 22E
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You want to endow a scholarship that will pay $13,000 per year forever, starting one year from now. If the school's
endowment discount rate is 8%, what amount must you donate to endow the scholarship
The amount you must donate is $
(Round to the nearest cent.)
Transcribed Image Text:You want to endow a scholarship that will pay $13,000 per year forever, starting one year from now. If the school's endowment discount rate is 8%, what amount must you donate to endow the scholarship The amount you must donate is $ (Round to the nearest cent.)
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