Following the birth of a child, a parent wants to make an initial investment Po that will grow to $70,000 for the child's education at age 18. Interest is compounded continuously at 7%. What should the initial investment be? Such an amount is called the present value of $70,000 due 18 years from now. The present value is about $ (Do not round until the final answer. Then round to two decimal places as needed.)

Following the birth of a child, a parent wants to make an initial investment Po that will grow to $70,000 for the child's education at age 18. Interest is compounded continuously at 7%. What should the initial investment be? Such an amount is called the present value of $70,000 due 18 years from now. The present value is about $ (Do not round until the final answer. Then round to two decimal places as needed.)

College Algebra

1st Edition

ISBN:9781938168383

Author:Jay Abramson

Publisher:Jay Abramson

Chapter6: Exponential And Logarithmic Functions

Section: Chapter Questions

Problem 4PT: An investment account was opened with aninitial deposit of 9,600 and earns 7.4 interest,compounded...

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