Following the birth of a child, a parent wants to make an initial investment P, that will grow to $70,000 for the child's education at age 18. Interest is compounded continuously at 6%. What should the initial investment be? Such an amount is called the present value of $70,000 due 18 years from now.
Following the birth of a child, a parent wants to make an initial investment P, that will grow to $70,000 for the child's education at age 18. Interest is compounded continuously at 6%. What should the initial investment be? Such an amount is called the present value of $70,000 due 18 years from now.
Chapter12: Sequences, Series And Binomial Theorem
Section12.3: Geometric Sequences And Series
Problem 12.59TI: New grandparents decide to invest 3200 per month in an annuity for their grandson, The account will...
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Transcribed Image Text:Following the birth of a child, a parent wants to make an initial investment P, that will grow to $70,000 for the child's education at age 18. Interest is compounded
continuously at 6%.
What should the initial investment be? Such an amount is called the present value of $70,000 due 18 years from now.
The present value is about $.
(Do not round until the final answer. Then round to two decimal places as needed.)
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