A business group is considering establishing an endowment to allow eligible employees an opportunity to further their education. The amount of the grant available will be $10,000 per month. If the amount the business group is investing is $2 million, what nominal rate of return must the investment earn to fully fund the grant?

Question

Quizplus · Accepted Answer

The Answer of A business group is considering establishing an endowment to allow eligible employees an opportunity to further their education. The amount of the grant available will be $10,000 per month. If the amount the business group is investing is $2 million, what nominal rate of return must the investment earn to fully fund the grant?

A Business Group Is Considering Establishing an Endowment to Allow