Following the birth of a child, a parent wants to make an initial investment P, that will grow to $70,000 for the child's education at age 18. Interest is compounded continuously at 6%. What should the initial investment be? Such an amount is called the present value of $70,000 due 18 years from now.
Following the birth of a child, a parent wants to make an initial investment P, that will grow to $70,000 for the child's education at age 18. Interest is compounded continuously at 6%. What should the initial investment be? Such an amount is called the present value of $70,000 due 18 years from now.
Intermediate Algebra
10th Edition
ISBN:9781285195728
Author:Jerome E. Kaufmann, Karen L. Schwitters
Publisher:Jerome E. Kaufmann, Karen L. Schwitters
Chapter11: Exponential And Logarithmic Functions
Section11.2: Applications Of Exponential Functions
Problem 25PS
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