For the past 15 years, an employee of a large corporation has been investing in an employee sponsored educational savings plan. The employee has invested $8,000 dollars per year. Treat the investment as a continuous stream with interest paid at a rate of 4.2% compounded continuously.

a. What is the present value of the investment?

b. How much money would have had to be invested 15 years ago and compounded at 4.2% compounded continuously to grow to the amount found in part a ?

Answer rating: 100% (QA)

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