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Multiple choice question If an endowment fund of $2,327,000 is to be used to pay out grants of $175,000 at the end of every year

Multiple choice question

If an endowment fund of $2,327,000 is to be used to pay out grants of $175,000 at the end of every year in perpetuity what effective rate of interest must the funds earn?

A. 11.61%

B. 10.06%

C. 8.93%

D. 7.52%

E. 5.44%

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