A deposit of $5000 is made in a trust fund that pays 7.5% interest, compounded continuously. It is specified that the balance will be given to the college from which the donor graduated after the money has earned for 50 years. How much will the college receive?

Question

A deposit of $5000 is made in a trust fund that pays 7.5%  interest, compounded continuously. It is specified that the balance will be given to the college from which the donor graduated after the money has earned for 50 years. How much will the college receive?

anonymous · Answer

$$
5000 e^{ 50*(.075)}=212605.

$$