A philanthropist deposits $8,000 in a trust fund that pays 5.5% interest, compounded continuously. The balance will be given to the college from which the philanthropist graduated after the money has earned interest for 30 years. How much will the college receive? (Round your answer to the nearest cent.)

Question

Mathematics

Aubrie Pugh

19 March, 03:41

A philanthropist deposits $8,000 in a trust fund that pays 5.5% interest, compounded continuously. The balance will be given to the college from which the philanthropist graduated after the money has earned interest for 30 years. How much will the college receive? (Round your answer to the nearest cent.)

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Answers (1)

Know the Answer?

Jeffrey Phillips · Answer 1

Answer: $41,655.8

Step-by-step explanation:

A=8000e (0.055) 30

A = 8000e1.65

41,655.839

Balance to be given to the college rounded to the nearest cent will be $41,655.8