George jefferson established a trust fund that provides, Ask an Expert

Finance

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.

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