Problem 21. An arts club has decided to organize an annual arts festival, and to endow a Best Painting Prize, to be awarded at the festival. A local benefactor has agreed to make a donation to fund the prize in its first two ycars. It is planned that at the first festival, to be held one year from now, the prize money will be $1400, and that at the second festival, to be held two years from now, the prize money will be $1600. What is the smalest amount that the benefactor would nced to deposit now, into an account paying 4% interest, compounded continuously, in order that sufficient funds would be available to pay both prizes? (A) 1400e0.04 + 1600 (B) 1400 - 1.04-1+ 1600 - 1.04 2 (C) 1400e-0.01 1 1600e¬0.08 (D) 1600 - 1.04-1 + 1400 · 1.04-2 (E) 1600e-0.04 + 1400e -0.08
Problem 21. An arts club has decided to organize an annual arts festival, and to endow a Best Painting Prize, to be awarded at the festival. A local benefactor has agreed to make a donation to fund the prize in its first two ycars. It is planned that at the first festival, to be held one year from now, the prize money will be $1400, and that at the second festival, to be held two years from now, the prize money will be $1600. What is the smalest amount that the benefactor would nced to deposit now, into an account paying 4% interest, compounded continuously, in order that sufficient funds would be available to pay both prizes? (A) 1400e0.04 + 1600 (B) 1400 - 1.04-1+ 1600 - 1.04 2 (C) 1400e-0.01 1 1600e¬0.08 (D) 1600 - 1.04-1 + 1400 · 1.04-2 (E) 1600e-0.04 + 1400e -0.08
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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Transcribed Image Text:Problem 21. An arts club has decided to organize an annual arts festival, and to endow a Best
Painting Prize, to be awarded at the festival. A local benefactor has agreed to make a donation to
fund the prize in its first two ycars. It is planned that at the first festival, to be held one year from
now, the prize money will be $1400, and that at the second festival, to be held two years from now,
the prize money will be $1600. What is the sm&est amount that the benefactor would nced to
deposit now, into an account paying 4% interest, compounded continuously, in order that sufficient
funds would be available to pay both prizes?
(A) 1400e0.04 + 1600
(B) 1400 - 1.04-1+ 1600 . 1.04 2
(C) 1400e-0.01 1 1600e-0.08
(D) 1600 - 1.04-1+ 1400 .1.04-2
(E) 1600e-0.04 + 1400e-0.08
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