An elite private college receives large donations from successful alumni. The account that holds these donations now has $955 million.
a. How much would the account earn in 1 year of simple interest at a rate of 2.33%? Round to the nearest cent.
b. How much would the account earn in 1 year at 2.33% if the interest was compounded daily? Round to the nearest cent.
c. How much more interest is earned by compounding daily as compared to simple interest?
d. 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?