On the day of a child’s birth, a deposit of $25,000 is made in a trust fund that pays 8.75% interest, compounded continuously. D

Question

2 years ago

10

etermine the balance in this account on the child’s 25th birthday.

1 answer:

lbvjy [14] · Answer 1 · 2022-12-14T22:08:52+03:00

lbvjy [14]2 years ago

8 0

9514 1404 393

Answer:

$222,822.57

Step-by-step explanation:

The account balance is given by ...

A = P·e^(rt)

where P is the principal invested at interest rate r for t years.

A = $25,000×e^(0.0875·25) ≈ $222,822.57