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

Question 1

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

Correct Answer:

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