SOLUTION: Jack and Susan have just celebrated the birth of a daughter. They want to make a onetime deposit of money into an interest-bearing account so that their daughter will have $50,000

Question 724409: Jack and Susan have just celebrated the birth of a daughter. They want to make a onetime deposit of money into an interest-bearing account so that their daughter will have $50,000 for college at age 18. At a rate of 3.5%, compounded continuously, how much money do they need to deposit?
can anyone help me to solve it? want and need to know how to do it can someone show me please thank you.
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
Jack and Susan have just celebrated the birth of a daughter. They want to make a onetime deposit of money into an interest-bearing account so that their daughter will have $50,000 for college at age 18. At a rate of 3.5%, compounded continuously, how much money do they need to deposit?
can anyone help me to solve it? want and need to know how to do it can someone show me please thank you.
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A(t) = P*e^(rt)
----
50,000 = P*e^(0.035*18)
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P = 50000/1.8776 = $26,629.59
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Cheers,
Stan H.
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