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A MAT135 student wants to start investing their money for retirement. Microsoft currently has stock price of $295.90 per share, and a historic growth rate corresponding to an annual interest rate of 189 compounded continuously (measured from 2008). The student buys 10 Microsoft stocks. The investment follov this model: P(t) = Poe"t where P(t) is the price of the investment at time t (in years), r is the interest rate, and Po is the initial price c the investment. (a) If you need $1 million to retire, in how many years can this MAT135 student retire? Show your work and round your final answer to 2 decimal places. (b) The student will have to pay tax on the investment. To earn $1 million, the value of the investment must be $2 million. Considering taxes, how much longer will it take before the student can retire, compared to your answer in part (a)? Answer in years, and round to 2 decimal places.

A MAT135 student wants to start investing their money for retirement. Microsoft currently has stock price of $295.90 per share, and a historic growth rate corresponding to an annual interest rate of 189 compounded continuously (measured from 2008). The student buys 10 Microsoft stocks. The investment follov this model: P(t) = Poe"t where P(t) is the price of the investment at time t (in years), r is the interest rate, and Po is the initial price c the investment. (a) If you need $1 million to retire, in how many years can this MAT135 student retire? Show your work and round your final answer to 2 decimal places. (b) The student will have to pay tax on the investment. To earn $1 million, the value of the investment must be $2 million. Considering taxes, how much longer will it take before the student can retire, compared to your answer in part (a)? Answer in years, and round to 2 decimal places.

Calculus: Early Transcendentals
Calculus: Early Transcendentals
8th Edition
ISBN:9781285741550
Author:James Stewart
Publisher:James Stewart
Chapter1: Functions And Models
Section: Chapter Questions
Problem 1RCC: (a) What is a function? What are its domain and range? (b) What is the graph of a function? (c) How...
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A MAT135 student wants to start investing their money for retirement. Microsoft currently has a stock price of $295.90 per share, and a historic growth rate corresponding to an annual interest rate of 18%, compounded continuously (measured from 2008). The student buys 10 Microsoft stocks. The investment follows this model: P(t) = Poe"t where P(t) is the price of the investment at time t (in years), r is the interest rate, and Po is the initial price of the investment. (a) If you need $1 million to retire, in how many years can this MAT135 student retire? Show your work and round your final answer to 2 decimal places. (b) The student will have to pay tax on the investment. To earn $1 million, the value of the investment must be $2 million. Considering taxes, how much longer will it take before the student can retire, compared to your answer in part (a)? Answer in years, and round to 2 decimal places.
Transcribed Image Text:A MAT135 student wants to start investing their money for retirement. Microsoft currently has a stock price of $295.90 per share, and a historic growth rate corresponding to an annual interest rate of 18%, compounded continuously (measured from 2008). The student buys 10 Microsoft stocks. The investment follows this model: P(t) = Poe"t where P(t) is the price of the investment at time t (in years), r is the interest rate, and Po is the initial price of the investment. (a) If you need $1 million to retire, in how many years can this MAT135 student retire? Show your work and round your final answer to 2 decimal places. (b) The student will have to pay tax on the investment. To earn $1 million, the value of the investment must be $2 million. Considering taxes, how much longer will it take before the student can retire, compared to your answer in part (a)? Answer in years, and round to 2 decimal places.
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