UMS, an elite private school in Texas, currently has an endowment of 1.7 billion dollars. The university has agreed to fund new academic initiatives over the next 10 years by taking a draw from the endowment at the end of each year, beginning one year from now (at the end of year 1). The university will calculate the amount of the draw using a formula based on the year-end value of the endowment. The table below summarizes how large a draw the university will take based on the endowment's year-end value.

Amount of Endowment (year-end) Draw (%) of Endowment 0 - $1,500,000,000 0% $1,500,000,000 - $2,000,000,000 1% $2,000,000,000 - $2,500,000,000 2% $2,500,000,000 - 3%