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Brandon Ramirez wants to set up a scholarship at his alma mater. He is willing to invest $320,000 in an account earning 11 percent annually. What will be the annual scholarship that can be given from this investment? (Round to the nearest dollar.)

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eooyibo123

Answer:

The returns can cover a scholarship of $35,200

Explanation:

An annuity is and account that will be earning and paying out a continuous amount every year. Brandon Ramirez has invested $320,000 at 11% per year.

If the returns are to fund a scholarship, we will calculate the yearly return.

Yearly return= principal* rate

Yearly return= 320,000 * 0.11

Yearly return= $35,200

So the returns can cover a scholarship of $35,200