SOLUTION: Hello! I would like to check my solution. Mandy will require $11,000 in 2 years to return to college to get an MBA degree. How much money should she ask her parents for now so t

Question 85350: Hello! I would like to check my solution.
Mandy will require $11,000 in 2 years to return to college to get an MBA degree. How much money should she ask her parents for now so that, if she invests it at 9% compounded continously, will she have enough for school? Round to the nearest dollar.
Thank you
Answer by ankor@dixie-net.com(22740) (Show Source): You can put this solution on YOUR website!
Mandy will require $11,000 in 2 years to return to college to get an MBA degree. How much money should she ask her parents for now so that, if she invests it at 9% compounded continously, will she have enough for school? Round to the nearest dollar.
:
The continuous interest equation: P * e^(r*t) = A
Where A is the resulting amt; P = principal; r = interest rate; t = time in yrs
:
In this problem we need to find the principal (P), A=11000, r=.09, t=2
:
P * e^(.09*2) = 11000
P * e^.18 = 11000
P =
on a good calc enter:
11000/(e^.18) = 9187.97 ~ $9188 required
:
Check solution on a calc: enter 9188 * e^.18 = 11000.03

RELATED QUESTIONS
I am require $11,000 in two years to return to college to get an MBA degree. How much... (answered by stanbon)

Cindy will require $15,000 in 2 years to return to college to get an MBA degree. How much (answered by mathmate)

Word problems is something I have never been good at. This is one of those. Will I... (answered by ankor@dixie-net.com)

Thanks for the previous question answered. Pls, help me in this one also Cindy will... (answered by stanbon)

I would like to double check my answer. How long will it take $1400 to double at 12%... (answered by MathTherapy)

Time & distance Hello, I would like to get a solution for this question please.... (answered by Fombitz)

Hello there, My name is Michael, I'm 26 years old and I'm planning to go back to... (answered by MathLover1)

Is it 9,050.25? I want to check my answer. Topic: Financial Mathematics Anna wants (answered by ikleyn,MathLover1,greenestamps)

I would like to get some help with my algebra. How much will it... (answered by Fombitz)