Brandon Ramirez wants to set up a scholarship at his alma mater. He is willing to invest $320,000 in an account earning 11 percent annually. What will be the annual scholarship that can be given from this investment? (Round to the nearest dollar.)

The returns can cover a scholarship of $35,200

Explanation:

An annuity is and account that will be earning and paying out a continuous amount every year. Brandon Ramirez has invested $320,000 at 11% per year.

If the returns are to fund a scholarship, we will calculate the yearly return.

Yearly return = principal * rate

Yearly return = 320,000 * 0.11

Yearly return = $35,200

So the returns can cover a scholarship of $35,200