Continuous compound interest can be calculated using the formula A(t) =  Pe^rt, where P is the initial amount and A(t) is the value after time t at interest rate r (as a decimal).

(a) When Angela was born, her grandparents deposited $5,000 into a college savings account paying 6% interest compounded continuously. What is the balance after 15 years? Round your answer to two decimal places.

(b) If her grandparents want her to have $15,000 after 17 years, how much would they need to invest? Round your answer to two decimal places.

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Continuous compound a b At A P 5000 Y 6 006 t ... View the full answer