If an Endowment Fund of $2,327,000 Is to Be Used

question 100

Multiple Choice

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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