SOLUTION: On the day of a child's birth, a deposit of $40,000 is made in a trust fund that pays 6% interest, compounded continuously. Determine the balance in this account on the child's 30t
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Question 515529: On the day of a child's birth, a deposit of $40,000 is made in a trust fund that pays 6% interest, compounded continuously. Determine the balance in this account on the child's 30th birthday. (Round your answer to two decimal places.)
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
On the day of a child's birth, a deposit of $40,000 is made in a trust fund that pays 6% interest, compounded continuously. Determine the balance in this account on the child's 30th birthday.
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A(t) = P*e^(rt)
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A(30) = 40,000*e^(0.06*30) = $241,985.90
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Cheers,
Stan H.
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