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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Expert Answer

Viktor Wiley
Answered 2020-10-24 Author has 84 answers

Calculation:
Consider the provided data,
P=$5000, r=7.5%and1=50 years
Where, P is principal, ris the rate of interest and 1 is time period in years.
For compounded continuously,
A=Pert
Substitute the value of A, P, r,t,
A=5000e0.07550
Calculate 5000e0.07550 with the help of a calculator,
$212,605.41
The amount received by the college is $212,605.41.

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Jeffrey Jordon
Answered 2021-11-04 Author has 2064 answers

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