Answered

Get expert insights and reliable answers to your questions on IDNLearn.com. Discover comprehensive answers from knowledgeable members of our community, covering a wide range of topics to meet all your informational needs.

Mr. and Mrs. Williams hope to send their daughter to college in twelve years. How much money should they invest now at an interest rate of 8.5% per year,
compounded continuously, in order to be able to contribute $9000 to her education?

Sagot :

[tex]~~~~~~ \textit{Continuously Compounding Interest Earned Amount} \\\\ A=Pe^{rt}\qquad \begin{cases} A=\textit{accumulated amount}\dotfill & \$9000\\ P=\textit{original amount deposited}\\ r=rate\to 8.5\%\to \frac{8.5}{100}\dotfill &0.085\\ t=years\dotfill &12 \end{cases} \\\\\\ 9000=Pe^{0.085\cdot 12}\implies 9000Pe^{1.02}\implies \cfrac{9000}{e^{1.02}}=P\implies 3245.35\approx P[/tex]

Your engagement is important to us. Keep sharing your knowledge and experiences. Let's create a learning environment that is both enjoyable and beneficial. Thank you for trusting IDNLearn.com. We’re dedicated to providing accurate answers, so visit us again for more solutions.