 # Trust Fund A philanthropist deposits $5000 in a trust fund that pays 7.5% interest, compounded continuously. The balance will be given to the college from which the philanthropist graduated after the money has earned interest for 50 years. How much will the college receive? Line 2020-10-23 Answered Trust Fund A philanthropist deposits$5000 in a trust fund that pays 7.5% interest, compounded continuously. The balance will be given to the college from which the philanthropist graduated after the money has earned interest for 50 years.
How much will the college receive?
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Calculation:
Consider the provided data,
$P=5000$, $r=7.5\mathrm{%}\phantom{\rule{1em}{0ex}}\text{and}\phantom{\rule{1em}{0ex}}1=50$ years
Where, P is principal, ris the rate of interest and 1 is time period in years.
For compounded continuously,
$A=P{e}^{rt}$
Substitute the value of A, P, r,t,
$A=5000{e}^{0.075\cdot 50}$
Calculate $5000{e}^{0.075\cdot 50}$ with the help of a calculator,
$212,605.41 The amount received by the college is$212,605.41.

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