This scholarship will involve a cash flow of $10,000 per year, forever. If Jack thinks the appropriate rate of interest is 5.75%, how much must he invest today to cover this scholarship?

Finance Basics

Jack B. Stalk wants to donate an endowed scholarship for a Webster University student. This scholarship will involve a cash flow of $10,000 per year, forever. If Jack thinks the appropriate rate of interest is 5.75%, how much must he invest today to cover this scholarship?

 
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