George Jefferson established a trust fund that provides $171,500 in scholarships each year for worthy students. The trust fund earns a 2 percent rate of return.
Required
How much money did Mr. Jefferson contribute to the fund assuming that only the interest income is distributed?
- $8,575,000
- $4,116,000
- $3,026,289
- $5,145,000
- $6,860,000
Note: Provide support for your rationale.