stion list

Question $1$

Question $2$

Question $3$

Question $4$

Bob and Ann Mackenzie have a new grandchild, Brenda. They want to create a trust fund for her that will yield $$300,000$ on her $24$ th birthday.

a$)$ What lump sum would they have to deposit now at $5\mathrm{.}4\%,$ compounded continuously, to achieve $$300,000?$

b$)$ Bob and Ann decide instead to invest a constant money stream of $R(t)$ dollars per year. Find $R(t)$ such that the accumulated future value of the continuous money stream is $$300,000,$ assuming an interest rate of $54,$ compounded continuously.

a$)$ To achieve $$300,000,$ they would have to deposit $$82,087\mathrm{.}23$

$($Round to the nearest cent as needed.$)$

b$)$ To achieve $$300,000,$ they would need a constant money stream of $ per year.

$($Round to the nearest cent as needed.$)$