Having received a large inheritance, Jing-mei's parents wish to establish a trust for her college education. Nine years from now they need an estimated $120,000. How much should they set aside in trust now if they invest the money at 6.4%/year compounded quarterly? Continuously? (Round your answers to the nearest cent.) quarterly$ continuously$
Having received a large inheritance, Jing-mei's parents wish to establish a trust for her college education. Nine years from now they need an estimated $120,000. How much should they set aside in trust now if they invest the money at 6.4%/year compounded quarterly? Continuously? (Round your answers to the nearest cent.) quarterly$ continuously$
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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Having received a large inheritance, Jing-mei's parents wish to establish a trust for her college education. Nine years from now they need an estimated $120,000. How much should they set aside in trust now if they invest the money at 6.4%/year compounded quarterly? Continuously? (Round your answers to the nearest cent.)
quarterly$ continuously$
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Step 1 using present value formula for compounded quarterly.
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