Question: You plan to establish a scholarship program by donating $10,000 from your year-end bonus each year (so the first donation will be one year from

You plan to establish a scholarship program by donating $10,000 from your year-end bonus each year (so the first donation will be one year from now), for 40 years until you retire. The scholarship will pay out its first cash flow of C right after your last donation is made (that is, in year 40). The program will run forever, and the scholarship will grow at a rate of 4.2% per year starting from year 41. That is, the scholarship amount in year 41 will be C(1+g). Assume the interest rate is 6.7%. What is the amount C of the first scholarship? Round to the closest dollar.

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