# 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​ be? Such an amount is called the present value of ​\$70,000 due 19 years from now.

1. 👍 1
2. 👎 0
3. 👁 4,322
1. x e^.06t = 70000
x = 70000/e^(.06(19))
= 22,387.33

1. 👍 3
2. 👎 0

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