Because of a chronic water shortage in California, new athletic fields must use artificial turf or xeriscape landscaping. If the value of the water saved each quarter is $5,000, how much can a private developer afford to spend now on artificial turf provided he must recover his investment in 5 years. Use an interest rate of 12% per year, compounded continuously?

The private developer can afford to spend $

HINT How to determine the effective rate of interest in continuous compounding?