5. A. compounded continuously. She ultimately would like to purchase a $15000 car. How much would she Miss Kito decides to invest some of her money in an account gaining 7% interest have to invest initially to have the necessary money in 5 years? Round your answer to the nearest whole dollar. Note: For continuous compounding you can use the formula: A = Pert

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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5. A.
compounded continuously. She ultimately would like to purchase a $15000 car. How much would she
Miss Kito decides to invest some of her money in an account gaining 7% interest
have to invest initially to have the necessary money in 5 years? Round your answer to the nearest whole
dollar. Note: For continuous compounding you can use the formula: A = Pert
Transcribed Image Text:5. A. compounded continuously. She ultimately would like to purchase a $15000 car. How much would she Miss Kito decides to invest some of her money in an account gaining 7% interest have to invest initially to have the necessary money in 5 years? Round your answer to the nearest whole dollar. Note: For continuous compounding you can use the formula: A = Pert
В.
Miss Kito realizes she only has $8000 to invest, which is less than she would need as
discovered in part A. If she invest all $8000 in the same account described above, how long would it
take for her to reach the $15000 she needs? Round to the nearest whole year.
Transcribed Image Text:В. Miss Kito realizes she only has $8000 to invest, which is less than she would need as discovered in part A. If she invest all $8000 in the same account described above, how long would it take for her to reach the $15000 she needs? Round to the nearest whole year.
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