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An Endowment Fund of $5,000,000 Is to Pay Out Grants

Question 35

Multiple Choice

An endowment fund of $5,000,000 is to pay out grants for medical research. The grants are to be paid once per month and the first one is to be paid today. The fund will earn interest at 11% compounded semi-annually. What is the size of the monthly grants?


A) $45,833
B) $27,500
C) $39,782
D) $44,419
E) $44,817

Correct Answer:

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