Question 141639: Thanks for the previous question answered. Pls, help me in this one also
Cindy will require $12,000 in 5 years to return to college to get her degree. How much money should she ask her parents for now so that, if she invests it at 12% compounded continuously, she will have enough for school? (Round your answer to the nearest dollar.)
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! Cindy will require $12,000 in 5 years to return to college to get her degree. How much money should she ask her parents for now so that, if she invests it at 12% compounded continuously, she will have enough for school?
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A(t) = Pe^rt
12000 = Pe^(0.12*5)
P = 12000/e^0.6
P = $6585.74
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Cheers,
Stan H.
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