Following the birth of a child, a parent wants to make an initial investment P, that will grow to $50,000 for the child's education at age 18. Interest is compounded continuously at 7%. What should the initial investment be? Such an amount s called the present value of $50,000 due 18 years from now. The present value is about $ (Do not round until the final answer. Then round to two decimal places as needed.)
Following the birth of a child, a parent wants to make an initial investment P, that will grow to $50,000 for the child's education at age 18. Interest is compounded continuously at 7%. What should the initial investment be? Such an amount s called the present value of $50,000 due 18 years from now. The present value is about $ (Do not round until the final answer. Then round to two decimal places as needed.)
Chapter5: Exponential And Logarithmic Functions
Section: Chapter Questions
Problem 37CT: On the day a grandchild is born, a grandparent deposits $2500 in a fund earning 7.5% interest,...
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