Question

George Jefferson established a trust fund that will provide $170,500 per year in scholarships. The trust fund earns an annual return of 2.1 percent. How much money did Mr. Jefferson contribute to the fund assuming that only income is distributed?

Answer 1

$8,119,048

Step-by-step explanation:

Given that,

Amount of scholarships = $170,500 per year

Trust fund earns an annual rate of return = 2.1 percent

Let x be the amount contribute to the fund and assuming that only income is distributed,

2.1% of x = Amount of scholarships

0.021x = $170,500

x = $170,500 ÷ 0.021

= $8,119,048

Therefore, the amount of money that is contributed by the George Jefferson to the trust is $8,119,048.