posted by Brooke
Redo problem 8 in section 6.3 of your textbook (page 288) assuming that the parents need $105000 in 9 years for college expenses, and that the bank account earns 9.25% 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?
b) If the parents instead deposit a lump sum now, how much must the deposit be to attain the goal?