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A prominent alumnus of your university has just donated $3,500,000 to fund a scholarship that will distribute $125,000 per year forever beginning in one year.

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A prominent alumnus of your university has just donated $3,500,000 to fund a scholarship that will distribute $125,000 per year forever beginning in one year. For this to be true, what rate of return is expected on the donation? Multiple Choice 3.57% 3.44% 3.816 3.75\%

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