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

question 13

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) $19,000
• C) $190,000
• D) $18,000
• E) $9,500

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Definitions:

Mucosal Membrane

Moist tissue layer lining body cavities or passages that are open to the exterior, such as the mouth, nose, and intestines.

Upper Epithelial Cells

The cells that are located on the surface layer of an epithelium, acting as a barrier against physical and microbial threats.

Endocrine Gland

A gland in the body that releases hormones directly into the bloodstream to regulate various processes such as growth, metabolism, and mood.

Bloodstream

The flowing body fluid that circulates through the heart, arteries, capillaries, and veins, carrying oxygen, nutrients, and white blood cells throughout the body.