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That’s assuming the rest of the endowment isn’t reinvested. You’d need less than a 2% annual return on that $22B to fund the tuition in perpetuity.
by ckuhl 8y ago
That’s assuming the rest of the endowment isn’t reinvested. You’d need less than a 2% annual return on that $22B to fund the tuition in perpetuity.
- ChrisLomont 8y agoPrinceton tuition was 26K in 2001. It is now 45K. That's 3% growth in tuition, cutting into your estimate. The current endowment growth is already being spent to fund the university to the tune of ~4-6% [1]. So, if you take that source away, tuition would likely have to pick up the slack. Care to rerun your numbers adding this all in? [1] https://www.princeton.edu/news/2013/10/18/princeton-endowment-earns-117-percent-return-10-year-average-grows https://www.princeton.edu/news/2013/10/18/princeton-endowmen...