Assume Your University Earns an Average Rate of Return of 5.65

question 6

Multiple Choice

Assume your university earns an average rate of return of 5.65 percent on its endowment funds.If a new gift permanently increases annual scholarships by $32,000, what was the amount of the gift?

• A)$784,090.91
• B)$485,293.05
• C)$615,384.62
• D)$658,929.38
• E)$566,371.68

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