4. University Endowment Example from lecture Year 1: $100,000,000 endowment 5% rule allows $5,000,000 to be spent 90% of annual earnings allows $9,000,000 to be spent. Must choose lower of these. Therefore, allowed to spend $5,000,000. $4,000,000 added to principal amount Questions: a. What is the beginning endowment amount in year 2? b. Given the university's rules, how much is available to spend in year 2? c. What is the ending endowment amount for year 2? 4. University Endowment Example from lecture Year 1: $100,000,000 endowment 5% rule allows $5,000,000 to be spent 90% of annual earnings allows $9,000,000 to be spent. Must choose lower of these. Therefore, allowed to spend $5,000,000. $4,000,000 added to principal amount Questions: a. What is the beginning endowment amount in year 2? b. Given the university's rules, how much is available to spend in year 2? c. What is the ending endowment amount for year 2