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A prominent alumnus of your university has just donated $2,400,000 to fund a scholarship that will distribute $92,000 per year forever beginning in one year.
A prominent alumnus of your university has just donated $2,400,000 to fund a scholarship that will distribute $92,000 per year forever beginning in one year. For this to be true, what rate of return is expected on the donation?
3.69%
3.96%
4.09%
4.03%
3.83%
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