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A university has $16,000,000 invested in its endowment. The university wants to withdraw $800,000 from this endowment starting next year and continuing at annual intervals
A university has $16,000,000 invested in its endowment. The university wants to withdraw $800,000 from this endowment starting next year and continuing at annual intervals forever, with each subsequent payment growing at 4% per year. What rate of return does the endowment have to earn to sustain the desired withdrawals?
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