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A university alumni group wishes to provide an annual scholarship in the amount of $1,900 beginning next year. If the scholarship fund will earn an interest rate of 4% / year compounded continuously, find the amount of the endowment the alumni are required to make now.
$__________
Capital Lease
A lease agreement in which the lessee gains ownership or a substantial portion of the rights to the asset by the end of the lease term, treated as a purchase in accounting.
Lessee
A person or entity that leases property or equipment from another, known as the lessor, under a lease agreement.
Lessor
An entity or individual that owns an asset and grants another party the right to use that asset in exchange for periodic rental payments.
Capital Lease
A lease classified by the lessee as an asset and liability on the balance sheet because it effectively transfers substantially all risks and rewards of ownership to the lessee.
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