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On the day of a childs birth,her parents open a trust fund with 25000 into the account.if the account earns 8.75% interest continuously, how much will the fund have on the childs 25th birthday

 Feb 27, 2015

Best Answer 

 #1
avatar+118723 
+5

$$\\FV=Pe^{rt}\\
FV=25,000e^{0.0875*25}\\$$

 

$${\mathtt{25\,000}}{\mathtt{\,\times\,}}{{\mathtt{e}}}^{\left({\mathtt{0.087\: \!5}}{\mathtt{\,\times\,}}{\mathtt{25}}\right)} = {\mathtt{222\,822.574\: \!529\: \!968\: \!375}}$$

 

$222,822

 Feb 27, 2015
 #1
avatar+118723 
+5
Best Answer

$$\\FV=Pe^{rt}\\
FV=25,000e^{0.0875*25}\\$$

 

$${\mathtt{25\,000}}{\mathtt{\,\times\,}}{{\mathtt{e}}}^{\left({\mathtt{0.087\: \!5}}{\mathtt{\,\times\,}}{\mathtt{25}}\right)} = {\mathtt{222\,822.574\: \!529\: \!968\: \!375}}$$

 

$222,822

Melody Feb 27, 2015

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