Question

When Pilar is 12, her grandparents begin placing a continuous stream of $2,000 per year into...

When Pilar is 12, her grandparents begin placing a continuous stream of $2,000 per year into a college fund which has a continuously compounding interest rate of 1.8%. What will be the value of this continuous stream when Pilar is 18?

Math   Calculus   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Yumi's grandparents presented her with a gift of $17,000 when she was 10 years old to...
Yumi's grandparents presented her with a gift of $17,000 when she was 10 years old to be used for her college education. Over the next 7 years, until she turned 17, Yumi's parents had invested her money in a tax-free account that had yielded interest at the rate of 2.5%/year compounded monthly. Upon turning 17, Yumi now plans to withdraw her funds in equal annual installments over the next 4 years, starting at age 18. If the college fund is...
Yumi's grandparents presented her with a gift of $22,000 when she was 9 years old to...
Yumi's grandparents presented her with a gift of $22,000 when she was 9 years old to be used for her college education. Over the next 8 years, until she turned 17, Yumi's parents had invested her money in a tax-free account that had yielded interest at the rate of 4.5%/year compounded monthly. Upon turning 17, Yumi now plans to withdraw her funds in equal annual installments over the next 4 years, starting at age 18. If the college fund is...
An investment produces a continuous income stream at the rate of ?(?) = 3000 − 50?...
An investment produces a continuous income stream at the rate of ?(?) = 3000 − 50? dollars per year at time ?. If the prevailing annual interest rate remains fixed during the next 6 years at 5% compounded continuously, what is the present value of the investment over the next 6 years?
a.       The effective interest rate is 21.44%. If there are 12 compounding periods per year, what...
a.       The effective interest rate is 21.44%. If there are 12 compounding periods per year, what is the nominal interest rate? b.      What is the effective interest rate on a continuously compounded loan that has a nominal interest rate of 25%? c.       Which is the better investment, a fund that pays 20% compounded annually, or one that pays 18.5 % compounded continuously? d.      Money invested at 6% per year, compounded monthly. How money months you need to triple your money?...
5A-1 FV CONTINUOUS COMPOUNDING If you receive $15,000 today and can invest it at a 6%...
5A-1 FV CONTINUOUS COMPOUNDING If you receive $15,000 today and can invest it at a 6% annual rate compounded continuously, what will be your ending value after 15 years? 5A-2 PV CONTINUOUS COMPOUNDING In 7 years, you are scheduled to receive money from a trust established for you by your grandparents. When the trust matures there will be $200,000 in the account. If the account earns 9% compounded continuously, how much is in the account today? 5A-3 FV CONTINUOUS COMPOUNDING...
39. Suppose a continuous income stream has an annual rate of flow given by: f(t) =...
39. Suppose a continuous income stream has an annual rate of flow given by: f(t) = 5000e^(-.01t). If the interest rate is 7%, compounded continuously, create the integral to solve:    a) The Total Income for the next 5 year b) Present Value for the next 5 year c) Future Value 5 years from now
1a.) Determine when, to the nearest year, $2,000 invested at 5% per year, compounded daily, will...
1a.) Determine when, to the nearest year, $2,000 invested at 5% per year, compounded daily, will be worth $10,000. 1b.)Calculate, to the nearest cent, the future value FV (in dollars) of an investment of $10,000 at the stated interest rate after the stated amount of time. 6% per year, compounded daily (assume 365 days/year), after 12 years 1c.) Compute the specified quantity. The simple interest on a $2,000 loan at 2% per year amounted to $360. At what time t...
Given an interest rate of 12% per year compounded monthly, what is the value at the...
Given an interest rate of 12% per year compounded monthly, what is the value at the date t = 0 of a growing perpetual stream of $200 monthly payments that begin at the date t = 1 (1st month) and grows at 0.05% per month till perpetuity? (nearest integer value) Select one: a. $20000 b. $2857 c. $21053 d. -$5000
Which interest rate is more attractive to an investor, 12% per year with annual compounding, or...
Which interest rate is more attractive to an investor, 12% per year with annual compounding, or 11.5% per year with monthly compounding?
Given an interest rate of 6.5 percent per year, what is the value at year 10...
Given an interest rate of 6.5 percent per year, what is the value at year 10 of a perpetual stream of $3500 payments that begin at year 20?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT