The trust fund earns a five percent rate of return

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Arnold Ziffle established a trust fund that provides $75,000 in scholarships each year for worthy students. The trust fund earns a 5 percent rate of return. How much money did Ziffle contribute to the fund assuming that only the interest income is distributed? Show Work.

a. $485,000

b. $716,000

c. $1,250,000

d. $1,500,000

e. $7,500,000

Reference no: EM13768996

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