Suppose that the parents of a child will need $95000 in 13 years for college expenses, and that the bank account earns 11.5% compounded continuously. Round your answers to the nearest cent. You may need to compute your answers to 4 or more decimal places before you round to the nearest cent. a) At what constant, continuous rate must the parents deposit money into the account in order to save the money? Answer: b) If the parents instead deposit a lump sum now, how much must the deposit be to attain the goal? Answer:

Suppose that the parents of a child will need $95000 in 13 years for college expenses, and that the bank account earns 11.5% compounded continuously. Round your answers to the nearest cent. You may need to compute your answers to 4 or more decimal places before you round to the nearest cent. a) At what constant, continuous rate must the parents deposit money into the account in order to save the money? Answer: b) If the parents instead deposit a lump sum now, how much must the deposit be to attain the goal? Answer:

College Algebra

7th Edition

ISBN:9781305115545

Author:James Stewart, Lothar Redlin, Saleem Watson

Publisher:James Stewart, Lothar Redlin, Saleem Watson

Chapter5: Systems Of Equations And Inequalities

Section: Chapter Questions

Problem 14P: Annual interest yield refer to problem 13 .suppose the investor decides to increase the maximum...

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