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# How do you calculate the annual scholarship payment?

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A scholarship provider has \$500,000 which she will invest today to fund a scholarship forever. She expects to earn 8% on her money each year. If she wants to begin paying out the scholarship starting today, what will the annual scholarship payment be?

\$40,000.00
\$37.037.04
6,750,000.00
\$36,800.00

##### Solution Summary

Solution describes the steps to calculate the annual scholarship payment in the given case.

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###### Education
• BEng (Hons) , Birla Institute of Technology and Science, India
• MSc (Hons) , Birla Institute of Technology and Science, India
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