In 20 years, a father wants to accumulate $50,000 to pay for his daughter's college expenses. How much should he invest to achieve his goal if he can get 8% interest, compounded continuously? (Round your answer to the nearest cent.) Need Help? Read It

In 20 years, a father wants to accumulate $50,000 to pay for his daughter's college expenses. How much should he invest to achieve his goal if he can get 8% interest, compounded continuously? (Round your answer to the nearest cent.) Need Help? Read It

College Algebra

1st Edition

ISBN:9781938168383

Author:Jay Abramson

Publisher:Jay Abramson

Chapter6: Exponential And Logarithmic Functions

Section: Chapter Questions

Problem 3PT: Drew wants to save 2,500 to go to the nextWorld Cup. To the nearest dollar, how much willhe need to...

See similar textbooks

Related questions

Q: Charlotte invested $33,000 in an account paying an interest rate of 7 % compounded continuously.…

Q: Bob invests $1500 at an annual rate of 2%. Find the balance after 10 years, when the interest is…

Q: If you leave $5400 in an account earning 4% interest, compounded daily, how much money will be in…

Q: What rate of interest compounded annually is required to double an investment in 4 years? The…

Q: look at attachment need for reference

A: The formula used for Continuous compounding interest:

Q: Find the time required for an investment of 5000 dollars to grow to 6300 dollars at an interest rate…

Q: Elijah invested $79,000 in an account paying an interest rate of 2;% compounded daily. Landon…

A: Given: Elijah invested $79000 at 11/4% compounded daily for 7 years Landon invested $79000 at 13/4%…

Q: How long will it take money to quadruple if it is invested at the following rates? (A) 4% compounded…

A: We have to find time to quadruple.

Q: A principal of $3700 is invested at 5% interest, compounded annually. How many years will it take to…

A: GIVEN: Principal amount = $3700 Interest rate = 5%

Q: At a 8% interest compounded monthly, how long will it take to turn a hundred dollars into a million…

A: Initial amount= P= 100 Final amount = A= 1000000 Interest rate= r= 8%=0.08 Time=t=? Number of…

Q: To qualify for the interest-free loan, she must make monthly payments of $150 into an account that…

A: An exponential equation is an equation which consists the variable in powers. Like: 2x=4, in this…

Q: Lincoln invested $440 in an account paying an interest rate of 5% compounded continuously. Robert…

Q: To save for a new car, Trafton invested $7,000 in a savings account that earns 2.5% interest,…

Q: Jerome will be buying a used car for $6,000 in 2 years. How much money should he ask his parents for…

Q: How long will it take an investment of $4000 to double if the investment earns interest at the rate…

A: We will find how long will it take an investment to double as following.

Q: Katrina started an account with all the money she received as graduation gifts. The account had an…

Q: A principal of $4700 is invested at 6.25% interest, compounded annually. How many years will it take…

Q: Mary invested her $42, 000 bonus in an account earning 7.2% annual interest that is compounded…

A: We know that formula for compound interest is Given: A=3×Principal balance = $126000 P=$42,000;…

Q: How long does it take for an investment to double in value if it is invested at 14% compounded…

A: Compound interest:In compound interest, interest is added back to the principal sum so that interest…

Q: Sophie invested $170 in an account paying an interest rate of 2 % compounded continuously. Wyatt…

Q: Pascal receives a financial gift from his grandparents, which he invests at an interest rate of 5.5%…

Q: You invest at 7% interest, compounded monthly. How long does it take for your money to triple?

A: The compound interest formula is A=P(1+r/n)nt ; Where, P= principal r=interest rate…

Q: You have $1200 to invest in a bank account with an interest rate of 5.5%, compounded quarterly.…

Q: Twenty years ago, Euler deposited $3000 into a college savings account which pays 4% interest,…

A: We can find the current value of the investment as below using continuous compound interest…

Q: The interest rate for an investment under $4000 is 5.25%, compounded monthly. a) If $3700 is…

Q: Maria's parents invested $14,000 at 6% per year compounded monthly. How much money will there be in…

A: Compound interest is the addition of interest to the principal sum of a loan or deposit, or in other…

Q: Owen invested $81,000 in an account paying an interest rate of 3 % compounded continuously. Zoe…

Q: How long will it take for an investment to double in value if it earns 86% compounded…

A: It is given that, the interest rate is 86%. The objective is to calculate the time in years to for…

Q: 4 years ago, Dillon won some money in the lottery and put it in a bank account that earns 2%…

A: Amount after 4 years (compounded continuously);P(t)=P0 ertP(4)=5000r=0.02t=4P(4)=P0 e0.02*45000 =P0…

Q: To save for a new car, Trafton invested $3,000 in a savings account that earns 5.5% interest,…

Q: Billy starts a new savings account with $4,000. How much money does Billy’s account have if it gains…

A: Find the amount after 5 years with different term

Q: Rochelle deposits $5,000 in an IRA. What will be the value (in dollars) of her investment in 15…

A: Use compound interest formula.

Q: Find the time required for an investment of 5000 dollars to grow to 6200 dollars at an interest rate…

Q: If you invest $1200 in an account paying 9% compounded continuously, how much money will be in the…

Q: An aunt wants to make a gift of $120,000.00 to their niece's for her college education on her 18th…

Q: When a principal amount, P, is Invested at an annual interest rate, r, and compounded n times per…

A: Given formula A=P1+rnnt Here, P= Principal amount r= rate of interest n= Compounded period t=time

Q: How long will it take an investment of $2000 to double if the investment earns interest at the rate…

Q: Dennis deposits $10,000 in a savings account that earns 2.88% annual interest, compounded…

Q: Jerome will be buying a used car for $6,000 in 3 years. How much money should he ask his parents for…

A: Compounding continuously formula:

Q: Jerome will be buying a used car for $7,000 in 2 years. How much money should he ask his parents for…

A: Given:

Q: To save for a new car, Trafton invested $5,000 in a savings account that earns 3.5% interest,…

A: We can find the required answer as below.

Q: How long will it take an investment of $9000 to double if the investment earns interest at the rate…

Q: Rochelle deposits $4,000 in an IRA. What will be the value (in dollars) of her investment in 25…

A: We can make it easier for you

Q: Tessa invests $9100 in a new savings account which earns 4.1% annual interest, compounded quarterly.…

A: Given, Investment amount = $ 9100 annual interest rate = 4.1% time duration = 4 years the amount is…

Q: You invest your life savings into an account with continuously compounded interest, and you find…

A: Investment is according to continuously compounded interest. Principle amount (invested)= P0 Amount…

Q: How much more or less money would you have to invest today to have $12,000 in 2 years at 3.50%…

Q: A principal of $1500 is invested at 3.75% interest, compounded annually. How many years will it take…

A: Principal Amount = P = 1500 $Interest rate = r = 3.75 %Amount = A = 2000 $We have to calculate the…

Q: Jerome will be buying a used car for $11,000 in 2 years. How much money should he ask his parents…

A: Explained below

Q: Jerome will be buying a used car for $12,000 in 2 years. How much money should he ask his parents…

Question

100%

I need help solving this question

In 20 years, a father wants to accumulate $50,000 to pay for his daughter's college expenses. How much should he invest to achieve
his goal if he can get 8% interest, compounded continuously? (Round your answer to the nearest cent.)
$4
Need Help?
Read It

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 9 images

SEE SOLUTION Check out a sample Q&A here

Similar questions

Drew wants to save 2,500 to go to the nextWorld Cup. To the nearest dollar, how much willhe need to invest in an account now with 6.25 APR, compounding daily, in order to reach his goalin 4 years?
Alyssa opened a retirement account with 7.25 APRin the year 2000. Her initial deposit was 13,500. How much will the account be worth in 2025 if interest compounds monthly? How much more wouldshe make if interest compounded continuously?
Saving How much money should be invested every quarter at 10% per year, compounded quarterly, to have $5000 in 2 years?
What interest rate would you need to get to double an investment of 200 in eight years?
Rachael deposits $1500 into a retirement fund each year. The fund earns 8.2% annual interest, compounded monthly. If she opened her account when she was 19 years old, how much will she have by the time she is 55? How much of that amount will be interest earned?
Kyoko has 10,000 that she wants to invest. Her bankhas several investment accounts tochoose from, allcompounding daily. Her goal is to have 15,000 bythe time she finishes graduate school in 6 years. Tothe nearest hundredth of a percent, what should herminimum annual interest rate be in order to reach hergoal? (Hint: solve the compound interest formula forthe interest rate.)