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Beginning next year, a foundation will support an annual seminar on campus with the earnings of a $200,000 gift it received this year. It is felt that 6% interest will be realized for the first 10 years, but that plans should be made to anticipate an interest rate of 4% after that time. What amount should be added to the foundation now to fund the seminar at the $20,000 level into infinity?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91590168

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