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

question 60

Multiple Choice

A college received a contribution to its endowment fund of $2 million. It can never touch the principal, but 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) $19,000
• C) $190,000
• D) $18,000