Five years ago, an alumnus of a university donated $50,000 to establish a permanent endowment for scholarships. The first scholarships were awarded 1 year after the contribution. If the amount awarded each year, that is, the interest on the endowment, is $4500, the rate of return earned on the fund is closest to: (a) 7.5% per year (b) 8.5% per year (c) 9% per year (d) 10% per year

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Five years ago, an alumnus of a university donated
$50,000 to establish a permanent endowment for
scholarships. The first scholarships were awarded
1 year after the contribution. If the amount awarded
each year, that is, the interest on the endowment, is
$4500, the rate of return earned on the fund is closest
to:
(a) 7.5% per year
(b) 8.5% per year
(c) 9% per year
(d) 10% per year

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