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. (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?
Answer:
b) If the parents instead deposit a lump sum now, how much must the deposit be to attain the goal?
Answer:
asked by
Brooke
Respond to this Question
Similar Questions

Calculus
assuming that you wish to have $19000 in 7 years and that the account earns 6% compounded continuously. Round your answer to the nearest cent. Answer: 
math college
A bank account earns 10 percent interest compounded continously. What annual amount of money must parents deposit each year in order to save 110000 dollars in 9 years for a child's college expenses? Assume the annual amount is 
math
I have been staring at this problem forever, and cant seem to dig it up in my book. Please help! Two competing bank are trying to attract customers. (a) Ally Bank has an account which earns 25% interest every 10 years. Assuming 
math
A bank account earns 10 percent interest compounded continously. What annual amount of money must parents deposit each year in order to save 110000 dollars in 9 years for a child's college expenses? Assume the annual amount is 
College Algebra
Suppose an investment account is opened with an intial deposit of $12,000 earning 9.6% interest. Round all answers to the nearest dollar. a. How much will the account be worth after 20 years if it is compounded monthly? $ b. How 
Calculus Please help!
If 7000 dollars is invested in a bank account at an interest rate of 7 per cent per year. A) Find the amount in the bank after 6 years if interest is compounded annually? B) Find the amount in the bank after 6 years if interest is 
math
June made an initial deposit of $5000 in an account for her son. Assuming an interest rate of 7% compounded quarterly, how much will the account be worth in 11 years? Round to the nearest cent. Can someone help me with this 
ALGEBRA
If $540 is invested in an account that earns 19.75%, compounded annually, what will the account balance be after 12 years? (Round your answer to the nearest cent.) = 
math
If $690 is invested in an account that earns 20.75%, compounded annually, what will the account balance be after 25 years? (Round your answer to the nearest cent.) 
ALGEBRA
If $695 is invested in an account that earns 21.75%, compounded annually, what will the account balance be after 15 years? (Round your answer to the nearest cent.)