SOLUTION: A trust fund is being set up by a single payment so that at the end of 30years there will be 50,000 dollars in the fund. If the interest is compoundedcontinuously at an annual rate

Question 1136869: A trust fund is being set up by a single payment so that at the end of 30years there will be 50,000 dollars in the fund. If the interest is compoundedcontinuously at an annual rate of 6 percent, how much money should be paidinto the fund initially?
Answer by ikleyn(52786) (Show Source): You can put this solution on YOUR website!
.


Future value  50000 = ,


where P is the principal amount, which is the value under the question in this problem.


From the equation,


    P =  =  = 1366.19 dollars.    ANSWER

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