Answered

Discover the answers you need at Westonci.ca, where experts provide clear and concise information on various topics. Explore comprehensive solutions to your questions from knowledgeable professionals across various fields on our platform. Join our Q&A platform to connect with experts dedicated to providing accurate answers to your questions in various fields.

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]

We hope this was helpful. Please come back whenever you need more information or answers to your queries. We hope our answers were useful. Return anytime for more information and answers to any other questions you have. Westonci.ca is here to provide the answers you seek. Return often for more expert solutions.