Trust Fund A deposit of $20,000 is made in a trust fund that pays 8% 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 interest for 40 years. How much will the college receive?
Step 1:
State the quantities given in the problem. (If it is not given in the problem, enter DNE.)
P =
r =
t =
n =
Step 2:
Choose the appropriate compound interest formula.
A = Pert
A = P
1 +
r
n
nt
Step 3:
Solve using the formula chosen. (Round your answer to two decimal places.)
The college will receive $
.
