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Mr. and Mrs. Rodriguez hope to send their son to college in thirteen years. How much money should they invest now at an interest rate of 9% per year, compounded continuously, in order to be able to contribute $8000 to his education?

Do not round any intermediate computations, and round your answer to the nearest cent.

User Mariya
by
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1 Answer

4 votes

Answer:

$2,482.94

Explanation:


p {e}^(.09 * 13) = 8000


p = \frac{8000}{ {e}^(.09 * 13) } = 2482.94

User Sulman Azhar
by
5.4k points