Trent and Dottie Turner have a new​ grandchild, Brenda. They want to create a trust fund for her that will yield ​$270,000 on her 24th birthday.   a​) What lump sum would they have to deposit now at 5.7​%, compounded​ continuously, to achieve ​$270,000​? b​)Trent and Dottie decide instead to invest a constant money stream of​ R(t) dollars per year. Find​ R(t) such that the accumulated future value of the continuous money stream is ​$270,000​, assuming an interest rate of 5.7%,compounded continuously.

College Algebra
1st Edition
ISBN:9781938168383
Author:Jay Abramson
Publisher:Jay Abramson
Chapter9: Sequences, Probability And Counting Theory
Section9.4: Series And Their Notations
Problem 56SE: To get the best loan rates available, the Riches want to save enough money to place 20% down on a...
Question
Trent and Dottie Turner have a new​ grandchild, Brenda. They want to create a trust fund for
her that will yield ​$270,000 on her 24th birthday.
 
a​) What lump sum would they have to deposit now at 5.7​%, compounded​ continuously, to achieve ​$270,000​?
b​)Trent and Dottie decide instead to invest a constant money stream of​ R(t) dollars per year. Find​ R(t) such that the accumulated future value of the continuous money stream is ​$270,000​, assuming an interest rate of 5.7%,compounded continuously.
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