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3. If a firm with a $5 billion fund charged a 2 percent management fee for eight years, and 20 percent carried interest on all

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3. If a firm with a $5 billion fund charged a 2 percent management fee for eight years, and 20 percent carried interest on all profits, and earns a 3 time return on its investment, what is the return to LPs, in absolute dollar amount and percentage? (Assume that investments are made equally at the beginning of the first through fifth years, the holding period of each investment is five years, and there are no transaction fees.)

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