Roytec's graduating class of 2011 is planning to establish a scholarship endowment fund to mark the 10-year anniversary of their graduation. If Roytec can buy perpetuity from an insurance company with a guaranteed rate of return of 4%. How much money would the Class of 2011 need to give to Roytec to provide 2 full BDM scholarships annually? State your assumptions and show calculations.

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