Hello, I am little bit confused with this problem and I am not sure the method I am following is correct. Can you please provide detailed explanation with answer on how to approach this question.
Thanks in advance!
Here it the question:
A permanent endowment at the University of Alabama is to award scholarships to engineering students, The awards are to be made beginning 5 years after the $10 million lump-sum donation is made. If the interest from the endowment is to fund 100 students each year in the amount of $10,000 each, what annual rate of return must the endowment fund earn?
Orignal From: Rate of Return question. Please help!?
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