A College Received a Contribution to Its Endowment Fund of $2

question 130

Multiple Choice

A college received a contribution to its endowment fund of $2 million. They can never touch the principal, but they can use the earnings. At an assumed interest rate of 9.5 percent, how much can the college earn to help its operations each year?

• A) $95,000
• B) $18,000
• C) $19,000
• D) $190,000

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Definitions:

Positive Reinforcement

A technique in behavior management that increases the likelihood of a behavior by following it with a desirable outcome or reward.

American Core Values

Fundamental beliefs or principles that are widely accepted and upheld within American society, such as freedom, equality, and democracy.

Attitudes

Psychological tendencies expressed by evaluating a particular entity with some degree of favor or disfavor.

Subjective Perception

An individual's personal and biased interpretation of sensory information.