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
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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):
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
