SOLUTION: Sue and Tom have a new baby and wish to create a college fund for the child at age 18. How much money is needed to be invested now in an account that draws 10% compounded instantan

Algebra ->  Exponential-and-logarithmic-functions -> SOLUTION: Sue and Tom have a new baby and wish to create a college fund for the child at age 18. How much money is needed to be invested now in an account that draws 10% compounded instantan      Log On


   

Question 140341This question is from textbook College Algebra
: Sue and Tom have a new baby and wish to create a college fund for the child at age 18. How much money is needed to be invested now in an account that draws 10% compounded instantaneously if they want $30,000 when the child enters college? Use A=Pe^rt
I did this. Please help.
30000=Pe(10)(18)
e8.006=e5.192 This question is from textbook College Algebra

Answer by josmiceli(19441) About Me  (Show Source):
You can put this solution on YOUR website!
A+=+P%2Ae%5E%28rt%29
30000+=+P%2Ae%5E%28.1%2A18%29
30000+=+P%2Ae%5E1.8
30000+=+P%2A6.0496
P+=+30000+%2F+6.0496
P+=+4958.97
The need to invest about $4,959.00