An elite private college receives large donations from successful alumni. The account that holds these donations now has $955 million.

How much would the account earn in 1 year of simple interest at a rate of 2.33%? Round to the nearest dollar.

Answer
$22,251,500

How much would the account earn in 1 year at 2.33% if the interest was compounded daily? Round to the nearest dollar.

Answer
$22,512,028

How much more interest is earned by compounding daily as compared to simple interest?

Answer
$260,528

If the money is used to pay full scholarships, and the price of tuition is $61,000 per year, how many more students each year can receive full 4-year scholarships if the interest were compounded daily rather than using simple interest?

Answer
One, since each 4-year (full) scholarship is worth $244,000.