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

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) $18,000
C) $19,000
D) $190,000