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A permanent endowment at a major university is established to award scholarships to engineering students. The scholarships will be awarded 11 years after the $10
A permanent endowment at a major university is established to award scholarships to engineering students. The scholarships will be awarded 11 years after the $10 million lump-sum donation is made. If the interest from the endowment is to fund 100 students each year in the amount of $10,000 each (for infinite years), what annual rate of return must the endowment fund earn? Hint: (5%<=i*<=6%).
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