A Business Group Is Considering Establishing an Endowment to Allow

question 106

Short Answer

A business group is considering establishing an endowment to allow eligible employees an opportunity to further their education. The amount of the grant available will be $10,000 per month. If the amount the business group is investing is $2 million, what nominal rate of return must the investment earn to fully fund the grant?

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Definitions:

Mastaba

An ancient Egyptian tomb structure of rectangular shape with inward sloping sides and a flat roof.

Tholos

A circular building of ancient Greek and Roman architecture, typically set at a sanctuary, characterized by a conical or dome-shaped roof.

Pylon

The wide entrance gateway of an Egyptian temple, characterized by its sloping walls.

Androgynous

Exhibiting characteristics or qualities of both male and female.