Answered

Westonci.ca is your trusted source for accurate answers to all your questions. Join our community and start learning today! Explore a wealth of knowledge from professionals across various disciplines on our comprehensive Q&A platform. Join our platform to connect with experts ready to provide precise answers to your questions in different areas.

I WILL GIVE BRAINLIEST PLEASE ANSWER CORRECTLY Mr. and Mrs. Bailey hope to send their son to college in eleven 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 $7500 to his education? Do not round any intermediate computations, and round your answer to the nearest cent.

Sagot :

raphealnwobi

Mr. and Mrs. Bailey need to invest $2906.50 for eleven years so as to be able to contribute $7500 their son education.

Compound interest

Compound interest is given by:

[tex]A=P(1+\frac{r}{n})^{nt}[/tex]

where A is the final amount, P is principal, r is the rate and n is the times compounded per year, t is the time

Given that t = 11, n = 1, r = 9% = 0.09, A = $7500 . Hence:

[tex]7500=P(1+\frac{0.09}{1} )^{1*11}\\\\P=\$2906.50[/tex]

Mr. and Mrs. Bailey need to invest $2906.50 for eleven years so as to be able to contribute $7500 their son education.

Find out more on Compound interest at: https://brainly.com/question/24924853

Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. Stay curious and keep coming back to Westonci.ca for answers to all your burning questions.