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A college received a new contribution of $2 million to its endowment fund. The college can never touch the principal of $2 million but can
A college received a new contribution of $2 million to its endowment fund. The college can never touch the principal of $2 million but can use the interest earnings to support its operations. If the endowment fund is expected to earn 5 percent per year forever , how much in additional support funds will the college receive per year from this contribution?
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