Assume Cambridge Ventures raises $$10,120,000$ for a private equity fund with a one$-$year life. The fund has a hurdle rate of $5$ percent,

above which it earns a carried interest of $15$ percent. If Cambridge generates a return of $16$ percent, what is the firm's carried interest

for the year?

Carried interestAssume Cambridge Ventures raises $$10,120,000$ for a private equity fund with a one$-$year life. The fund has a hurdle rate of $5$ percent, above which it earns a carried interest of $15$ percent. If Cambridge generates a return of $16$ percent, what is the firm$$s carried interest for the year?