Question: Answer the above problem Your Turn: Sample Problem You would like to set up an endowment at the UI. You can afford to give 4,500,000

Answer the above problem

Your Turn: Sample Problem You would like to set up an endowment at the UI. You can afford to give 4,500,000 and would like the endowment to pay out $300,000 next year and grow at a 3% rate forever. What annual interest rate must the Ul achieve on the endowment? a) 3.67% b) 6.67% c) 9.67% d) 18.00%

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