The grandparents of a newborn child decide to establish a college fund for her. They invest $10,000 into a fund that pays 4.5% interest compounded continuously. a) Write a model for the value of the investment over time and find the value of the investment when the child enters college at 18 years old. a). b) In 2013, the average annual public in-state college tuition was $8893, which was 2.9% above the 2012 cost. Use these figures to write a model to project the amount of money needed to pay for one year's college tuition 18 years into the future from 2017. b) c) What amount of money must be invested in the child's college fund to generate enough money in 18 years to pay for four years of college?
The grandparents of a newborn child decide to establish a college fund for her. They invest $10,000 into a fund that pays 4.5% interest compounded continuously. a) Write a model for the value of the investment over time and find the value of the investment when the child enters college at 18 years old. a). b) In 2013, the average annual public in-state college tuition was $8893, which was 2.9% above the 2012 cost. Use these figures to write a model to project the amount of money needed to pay for one year's college tuition 18 years into the future from 2017. b) c) What amount of money must be invested in the child's college fund to generate enough money in 18 years to pay for four years of college?
Chapter6: Exponential And Logarithmic Functions
Section6.1: Exponential Functions
Problem 68SE: An investment account with an annual interest rateof 7 was opened with an initial deposit of 4,000...
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Transcribed Image Text:The grandparents of a newborn child decide to establish a college fund for her. They
invest $10,000 into a fund that pays 4.5% interest compounded continuously.
a)
Write a model for the value of the investment over time and find the
value of the investment when the child enters college at 18 years old.
a)_
b)
In 2013, the average annual public in-state college tuition was $8893,
which was 2.9% above the 2012 cost. Use these figures to write a model to project
the amount of money needed to pay for one year's college tuition 18 years into the
future from 2017.
b)_
c)
What amount of money must be invested in the child's college fund to
generate enough money in 18 years to pay for four years of college?
c)_
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