A university has $16,000,000 invested in its endowment.The university wants to withdraw $800,000 from this endowment starting next year and continuing at annual intervals forever,with each subsequent payment growing at 4% per year.What rate of return does the endowment have to earn to sustain the desired withdrawals?

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The Answer of A university has $16,000,000 invested in its endowment.The university wants to withdraw $800,000 from this endowment starting next year and continuing at annual intervals forever,with each subsequent payment growing at 4% per year.What rate of return does the endowment have to earn to sustain the desired withdrawals?

A University Has $16,000,000 Invested in Its Endowment