A permanent scholarship fund is started through a donation o

A permanent scholarship fund is started through a donation of $100,000. If five scholarships of $5,000 each are awarded each year beginning ten years from now, what is the rate of return \"i\" for the invested money?

Solution

The answer is absolutely right. The asnwer would be 10 %.

100,000 at 10% for ten years equals approx. 250,000. 10% is 25,000 per year.