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A prominent alumnus of your university has just donated $3,300,000 to fund a scholarship that will distribute $119,000 per year forever beginning in one year.
A prominent alumnus of your university has just donated $3,300,000 to fund a scholarship that will distribute $119,000 per year forever beginning in one year. For this to be true, what rate of return is expected on the donation?
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3.73%
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3.61%
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3.85%
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3.47%
- 3.79%
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