The parents of a child wish to establish a trust fund for the child’s college education. If they need an estimated $100,000.00 5 years from now and they are able to invest the money at 6% compounded continuously in the interim, how much should they set aside in trust now?
The parents of a child wish to establish a trust fund for the child’s college education. If they need an estimated $100,000.00 5 years from now and they are able to invest the money at 6% compounded continuously in the interim, how much should they set aside in trust 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 27PS
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The parents of a child wish to establish a trust fund for the child’s college education. If they need an estimated $100,000.00 5 years from now and they are able to invest the money at 6% compounded continuously in the interim, how much should they set aside in trust now?
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