system
Given the following post, respond as if you're commenting on Reddit:
human
ELI5: "TIL that Harvard earns enough money on interest from its endowment that it could offer free tuition to all students and still make profit on the interest."

Saw this link. Can someone explain the details of this. How long could they offer tuition for free for all students?
gpt
They have an endowment worth (in excess) of $32 **BILLION**.  If they earn 5% a year in interest (probably lower than they earn) that is $1,600,000,000 a year.  Assuming you take out $1,000,000,000 for the expenses of the school that is $600,000,000 at around $60,000 a year per student = 10,000 students.

Assuming no growth and steady returns (also no inflation) they could provide tuition for 10,000 students... forever.