(a) An investment account earns 10% interest compounded continuously. At what constant, continuous rate must a parent...

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(a) An investment account earns 10% interest compounded continuously. At what constant, continuous rate must a parent deposit money into such an account in order to save $100,000 in 10 years for a child’s college expenses?
(b) If the parent decides instead to deposit a lump sum now in order to attain the goal of $100,000 in 10 years, how much must be deposited now?

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Applied Calculus

ISBN: 9781119275565

6th Edition

Authors: Deborah Hughes Hallett, Patti Frazer Lock, Andrew M. Gleason, Daniel E. Flath, Sheldon P. Gordon, David O. Lomen, David Lovelock, William G. McCallum, Brad G. Osgood, Andrew Pasquale

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Question Posted: Apr 11, 2023 04:26 AM

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(a) An investment account earns 10% interest compounded continuously. At what constant, continuous rate must a parent...

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a The future value in 10 years is 100000 We first fin...View the full answer

Applied Calculus

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