Calc

posted by Anonymous

At the time of the birth of a child, a parent wants to begin a college fund that will grow to \$50000 by the child's 18th birthday. Interest is compounded continuously at 8.5%. What should the initial investment (P0) be?

1. bobpursley

50,000=PO*e^k18

ln 50,000= ln PO + .085*18

lnPO= 10.82-1.53=9.29
PO=10829.18

check that.

2. pet

how many years will it take for \$4,000 to reach \$6,000 at a simple interest rate of 5

Similar Questions

1. math

The terms of a single parent's will indicate that a child will receive an ordinary annuity of \$20,000 per year from age 18 to age 24 (so the child can attend college) and that the balance of the estate goes to a niece. If the parent …
2. algebra

On the day a child was born, a lump sum P was deposited in a trust fund paying 6.5% interest compounded continuously. Use the balance A of the fund on the child's 29th birthday to find P. (Round your answer to the nearest cent.) A …
3. calculus

The proprietor of Carson Hardware Store has decided to set up a sinking fund for the purpose of purchasing a computer 2 yr from now. It is expected that the purchase will involve a sum of 40000 dollars. The fund grows at the rate of …
4. Finance

An insurance company is offering a new policy to its customers. Typically, the policy is bought by a parent or grandparent for a child at the child's birth. The details of the policy are as follows: The purchaser (say, the parent) …
5. Finance

An insurance company is offering a new policy to its customers. Typically, the policy is bought by a parent or grandparent for a child at the child's birth. The details of the policy are as follows: The purchaser (say, the parent) …

On the day of a child's birth, a deposit of \$30,000 is made in a trust fund that pays 3% interest, compounded continuously. Determine the balance in this account on the child's 30th birthday. (Round your answer to two decimal places.)
7. Finance

An insurance company is offering a new policy to its customers. Typically, the policy is bought by a parent or grandparent for a child at the child's birth. The details of the policy are as follows: The purchaser (say, the parent) …
8. Pre-Calc

An initial investment of \$9000 grows at an annual interest rate of 5% compounded continuously. How long will it take to double the investment?
9. Algebra

Following the birth of a​ child, a parent wants to make an initial investment P 0 that will grow to ​\$70,000 for the​ child's education at age 19. Interest is compounded continuously at 6​%. What should the initial investment​ …
10. MATH

Tiffany invested \$725 at the end of every month in an investment fund that was earning interest at a rate of 4.74% compounded monthly. She stopped making regular deposits at the end of 10 years when the interest rate changed to 6.69% …

More Similar Questions