A wealthy benefactor just donated some money to a local


A wealthy benefactor just donated some money to a local college. The gift was established to provide scholarships for worthy students. The first scholarship will be granted one year from now for a total of 35,000. Annually thereafter, the scholarship amount will be increase by 5.5 percent to help ofset the effects of inflation. The scholarship fund will last indefinitely. What is the value of this girft today at a discount rate of 8 percent?

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Financial Management: A wealthy benefactor just donated some money to a local
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