ALGEBRA 1

posted by .

Cindy will require $15,000 in 2 years to return to college to get an MBA degree. How much money should she ask her parents for now so that, if she invests it at 12% compounded continuously, she will have enough for school?

  • ALGEBRA 1 -

    The continuous interest formula is
    A=Pert
    A=future amount, 15000
    P=principal (unknown)
    e=euler's constant, 2.71828..
    r=rate of interest, 0.12 for 12%
    t=time in years (for annual rate of interest), 2 years

    So
    15000=P*e0.12*2
    P=15000/(e0.24)

    Can you take it from here?

    Do a check by the reverse calculation, to see if
    P*e0.24 gives 15000.

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. math

    Jim wants to deposit money in an account to save for a new stereo system in two years. He wants to have $4,000 available at the time. The following rates are available to him: 6.2% simple interest 6.1% compounded annually 5.58% compounded …
  2. college math

    Cindy deposited $1,000 in an account that pays 12% interest compounded quarterly. How much money will Cindy have in the account after 7 years?
  3. Calculus

    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. …
  4. Math

    How much money should be invested at an annual interest rate of 6.2% compounded continuously, to be worth at least $58,000 after 13 years.
  5. MAAAATTTTHHHHHH

    Franco invests some money at 6.9%/a compounded annually and David invests some money at 6.9%/a compounded monthly. After 30 years, each investment is worth $25 000. Who made the greater original investment and by how much?
  6. algebra

    Hannah invests $3850 dollars at an annual rate of 6% compounded continuously, according to the formula A=Pe^rt, where A is the amount, P is the principal, e=2.718, r is the rate of interest, and t is the time, in years. (a) Determine, …
  7. Pre Calc

    how much money should i invest at 8.2% compounded continuously if i wish to have $100,000 in 5 years?
  8. Mathematics and investment

    1. Angelo wants to renovate his house in 3 years. He estimates the cost 300,000. How much must Angelo invest now at 8% compounded quarterly in order to have 300,000 3 years from now. 2. Angelo Ancis want to save 500,000 in 5.5 years …
  9. math

    Jerome will be buying a used car for ​$9 comma 0009,000 in 22 years. How much money should he ask his parents for now so​ that, if he invests it at 99​% compounded continuouslycontinuously​, he will have enough to buy the​ …
  10. Calculus

    You need $12,000 in your account 5 years from now and the interest rate is 6% per year, compounded continuously. How much should you deposit now?

More Similar Questions