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I WILL GIVE BRAINLIEST PLEASE ANSWER CORRECTLY Mr. and Mrs. Bailey hope to send their son to college in eleven years. How much money should they invest now at an interest rate of 9% per year, compounded continuously, in order to be able to contribute $7500 to his education? Do not round any intermediate computations, and round your answer to the nearest cent.

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raphealnwobi

Mr. and Mrs. Bailey need to invest $2906.50 for eleven years so as to be able to contribute $7500 their son education.

Compound interest

Compound interest is given by:

[tex]A=P(1+\frac{r}{n})^{nt}[/tex]

where A is the final amount, P is principal, r is the rate and n is the times compounded per year, t is the time

Given that t = 11, n = 1, r = 9% = 0.09, A = $7500 . Hence:

[tex]7500=P(1+\frac{0.09}{1} )^{1*11}\\\\P=\$2906.50[/tex]

Mr. and Mrs. Bailey need to invest $2906.50 for eleven years so as to be able to contribute $7500 their son education.

Find out more on Compound interest at: https://brainly.com/question/24924853

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