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Endowment fund

A college received a contribution to its endowment fund of $2.4million. They can never touch the principal, but they can use the earnings. At an assumed interest rate of 6.5 percent, how much can the college earn to help its operations each year?

A.$ 65,000

B.$130,000

C.$156,000

D.$195,000

E.$369,23116.

Charlotte deposited $1,000 into an account that pays 6.0 percent annually. How much more interest would Charlotte earn in 10 years if she did not withdraw the interest earned at the end of the year compared to the case where Charlotte withdraws the interest at the end of each year?

A.$0

B.$19

C.$100

D.$191

E.More than $19117.

Suppose the price of a Wendy’s Bacon Cheeseburger is $0.99, the same as it was five years ago. Had the price of this sandwich increased at the same 3% annual rate as U.S. consumer prices did over the last five years, what would its price be today?

A.$1.22

B.$1.15

C.$1.12

D.$1.02

E.$0.84

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