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
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A.) Find the balance on the person 35th birthday
B
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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
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Rule of 72
72/8.75=8.2 yrs
not exact but very close
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