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A prominent alumnus of your university has just donated $2,000,000 to fund a scholarship that will distribute $80,000 per year forever beginning in one year.

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A prominent alumnus of your university has just donated $2,000,000 to fund a scholarship that will distribute $80,000 per year forever beginning in one year. For this to be true, what rate of return is expected on the donation? Multiple Choice 4.27% a 4.20% 413% 0 3.85% 400%

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