Answered

Get reliable answers to your questions at Westonci.ca, where our knowledgeable community is always ready to help. Get detailed and accurate answers to your questions from a community of experts on our comprehensive Q&A platform. Get quick and reliable solutions to your questions from a community of experienced experts on our platform.

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]

Thanks for stopping by. We are committed to providing the best answers for all your questions. See you again soon. Thanks for using our service. We're always here to provide accurate and up-to-date answers to all your queries. Get the answers you need at Westonci.ca. Stay informed with our latest expert advice.