27.

A recent alumnus of your university gifted two million dollars to the school to fund annual scholarships for needy students. The school expects to earn an average rate of return of 5.0 percent on the gift and to use all annual earnings for scholarships. What is the annual amount available for distribution as scholarships?

Group of answer choices

$40,000,000

$100,000

$20,000,000

$10,000,000

$50,000