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A private equity fund investments $20 million in Project A that they exit in 12 months with $40 million. They invest $25 in Project B

A private equity fund investments $20 million in Project A that they exit in 12

months with $40 million. They invest $25 in Project B and exit in 12 months with $25

million. The carried interest rate is 11.00%. Calculate the carried interest.

A. $7.15

B. $2.20

C. $2.20

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