Question

On the day of a child's birth, a deposit of $30,000 is made in a trust fund that pays 3% interest, compounded continuously. Determine the balance in this account on the child's 30th birthday. (Round your answer to two decimal places.)

Answer 1

e^rt = e^(.03*30) = e^.9 = 2.4596

times 30,000 = $ 73,788.09

Answer 2

Thank you :)

Answer 3

You are welcome :)

Answer 4

At the birth of a baby, a couple decides to make an initial investment of C at the rate of 7% compounded annually so that the amount will grow to $30,000 by her 10th birthday. What should their initial investment be? Round to the nearest dollars.

Answer 5

On the day of a child's birth, a parent deposits $25,000 in a trust fund that pays 5% interest, compounded continuously. Determine the balance in this account on the child's 24th birthday. (Round your answer to two decimal places.)