Question
A university has RM16,000,000 invested in its endowment. The university wants to withdraw RM800,000 from this endowment starting next year and continuing at annual intervals
A university has RM16,000,000 invested in its endowment. The university wants to withdraw RM800,000 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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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
