Question in 30 years you plan to set up a fellowship fund, Ask an Expert

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Question: In 30 years, you plan to set up a fellowship fund that pays out 100,000 per year in perpetuity with an annually compounded discount rate of 5%. In order to set up the fund in 30 years, how much do you need to save each year (starting this year) assuming you can get a semi-annually compounded return of 10% on your savings for the next 30 years?

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