i will 10 upvotes urgent QUESTION 5Five years ago, an alumnus of a university donated $52,408.51 to establish a permanent endowment for scholarships. The firstscholarships were awarded 1 year after the contribution. If the amount awarded each year, that is, the interest on the endowment,is $4,193.01, the rate of return earned on the fund is closest to:

Donation amount=$52,408.51Annual interest=$4193.01Find out annual interest rate.

Answered: Five years ago, an alumnus of a…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Five years ago, an alumnus of a university donated $52,408.51 to establish a permanent endo scholarships were awarded 1 year after the contribution. If the amount awarded each year, the is $4,193.01, the rate of return earned on the fund is closest to: