A bank account earns 10% interest compounded continuously. At what (constant, continuous) rate must a parent deposit money into such an account in order to save $100,000 in 10 years for a child's college expenses

Question

amistre64 · Answer

whew!! you never know where those things take you

amistre64 · Answer

A = Pe^(rt) is our compunding continuously formula

anonymous · Answer

right but you have to do it backwards to find what to put in annually

amistre64 · Answer

do we start at 0?

anonymous · Answer

yes zero to 10

anonymous · Answer

the answer in the back of my book is 5820 per year

amistre64 · Answer

A=Pert is positon, our amount at a given time

A' = rate at which it changes

amistre64 · Answer

A' = Pr e^{rt}

anonymous · Answer

i believe its e to the negative rt right?

amistre64 · Answer

no, but why would you think that?

amistre64 · Answer

-rt is losing money

anonymous · Answer

well our present value formula is the integral of P(t)e^-(rt)

amistre64 · Answer

i got no idea what to do with that setup .... other than derive it and hope for the best

anonymous · Answer

yea alright well thanks for the help I have two tests tomorrow a physics and calc two test so just trying to be prepared

amistre64 · Answer

if i had your material i might be able to come to an idea about what its asking for if it wants to use that formula

anonymous · Answer

its alright no worries

amistre64 · Answer

so its akin to making regular payments to pay off a loan ....

anonymous · Answer

yea its like your paying off a 100,000 dollar loan only you are paying into an account to save up to 100,000

amistre64 · Answer

http://www.math.ucsd.edu/~mdhyatt/math10b/solutions/quiz4.PDF

amistre64 · Answer

that at least shows some computations that you can follow

anonymous · Answer

wow thank you thats awsome

amistre64 · Answer

lol, google did it; not me :)

anonymous · Answer

well thank you for finding that

amistre64 · Answer

youre welcome, with any luck it can be simple to parse