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Aleksandr-060686 [28]
3 years ago
10

Mr. and Mrs. Sanchez hope to send their daughter to college in fourteen years. How much money should they invest now at an inter

est rate of 9.5% per year, compounded continuously, in order to be able to contribute $9500 to her education?
Mathematics
1 answer:
stepan [7]3 years ago
7 0

Answer:

Principle (P) = $2,512.56 (Approx)

Step-by-step explanation:

Given:

Interest annually (R) = 9.5% = 0.095

Amount need (A) = $9500

Time period (T) = 14 years

Find:

Principle (P)

Computation:

A = P[e^(R*T)]

9,500 = P[e^(0.095 x 14)]

9,500 = P[3.781]

P = 9,500 / 3.781

Principle (P) = $2,512.56 (Approx)

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Answer:

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Answer:

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