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Please answer the following question, the correct answer is bolded below. Please do not use excel...

Please answer the following question, the correct answer is bolded below. Please do not use excel and show all formulas and work. Thank you! I rate.

A university graduate wants to set up a scholarship fund for economically disadvantaged high

school seniors who have a mental aptitude to become good engineers. The scholarships will be

awarded starting now (year 0) and continue forever to several individuals for a total of $100,000

per year. If investments earn at 5% per year, how much must the alumnus contribute immediately

(year 0)?

answer: $2,100,000

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