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1. Wicker Imports established a trust fund that provides $139,700 in scholarships each year for needy...

1. Wicker Imports established a trust fund that provides $139,700 in scholarships each year for needy students. The trust fund earns a 3.00 percent rate of return. How much money did the firm contribute to the fund assuming that only interest income is distributed?
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Answer #1

Interest income that can be distributed by Wicker Imports:

Given interest income =$ 139,700

Rate of interest = 3%

Principal amount = Interest income / rate of interest

                            = 139700/3%

                            = $4,656,667

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