SOLUTION: On the day a person is born, a deposit of $50,000 is made in a trust fund that pays 8.75% in interest, compounded continuously.
A.) Find the balance on the person 35th birthday
B
Algebra.Com
Question 326505: On the day a person is born, a deposit of $50,000 is made in a trust fund that pays 8.75% in interest, compounded continuously.
A.) Find the balance on the person 35th birthday
B.) How much longer will the person have to wait for the balance to double?
Answer by rfer(16322) (Show Source): You can put this solution on YOUR website!
A=50000(2.7183)^.0875*35
A=50000(2.7183)^3.0625
A=50000*21.38138
A=1,069,069.02
-------------------
Rule of 72
72/8.75=8.2 yrs
not exact but very close
RELATED QUESTIONS
please help me solve this question.On the day of a child's birth, a deposit of $25,000 is (answered by ankor@dixie-net.com)
on the day of a childs birth,a deposit of 25,000 is made in a trust fund that pays 8.75%... (answered by robertb)
On the day of a child's birth, a deposit of $40,000 is made in a trust fund that pays 6%... (answered by stanbon)
On the day of a child's birth, a deposit of $40,000 is made in a trust fund that pays 5%... (answered by Alan3354)
. A ₱1.5M trust fund is created by depositing ₱40,000 quarterly at 16%
compounded... (answered by Theo)
On the day of your grandchild's birth, you deposit$46881 in a trust fund that pays 7.01%... (answered by stanbon)
Larry inherited Php1,500,000 on the day he became 35 years old. Under the specifications... (answered by Boreal)
Parents of a newborn baby are given a gift of Php 50,000 and will choose between two... (answered by ikleyn)
A fund of ₱240,000 is to be accumulated by making monthly deposits
of ₱6,000. If... (answered by Theo,MathTherapy)