A donor gives $1 million to fund scholarships totaling $29,000 per year. The first scholarships will be paid in exactly one year and future scholarships will be paid every subsequent year forever. What annual rate of return is the university endowment generating? Enter your answer as a decimal, and show 4 decimal places. For example, if your answer is 6.5%, you should enter .0650.

Answer rating: 100% (QA)

We can use the perpetuity formula to solve this problem ... View the full answer