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You have ​$400,000 to donate to your college. The​ college's discount rate is 7​%. You donate the money​ today, but you ask the college to delay the scholarship payment so that the first scholarship payment is made 10 years from today. How large will the annual payment​ be?

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abiolataiwo2015

Based on the information given the annual payment​ will be $51,476.86.

Annual scholarship payment

Using this formula

Annual payment=[Principal×(1+Discount rate)]×Discount rate

Let plug in the formula

Annual payment = [$400,000×(1+0.07)^9]×0.07

[$400,000×(1.07)^9]×7%

Annual payment= $735,383.68×0.07

Annual payment= $51,476.86

Inconclusion  the annual payment​ will be $51,476.86.

Learn more about annual payment here:https://brainly.com/question/25793394

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