George Jefferson established a trust fund that provides €150,000 in scholarships each year for worthy students.The trust fund earns a 4.25% rate of return.How much money did Mr.Jefferson contribute to the fund assuming that only the interest income is distributed?

Question

Quizplus · Accepted Answer

To find the initial contribution, divide the annual scholarship amount by the rate of return expressed as a decimal: €150,000 / 0.0425 = €3,529,411.77.

George Jefferson Established a Trust Fund That Provides €150,000 in Scholarships