If the schools endowment discount rate is 7 what amount


A. You want to endow a scholarship that will pay $10,000 per year forever, starting one year from now. If the school’s endowment discount rate is 7%, what amount must you donate to endow the scholarship?

B. How would your answer to Problem 4 change if you endow it now, but it makes the first award to a student 10 years from today?

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Financial Management: If the schools endowment discount rate is 7 what amount
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