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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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