Business, 10.08.2019 03:10 giajramosp2r5da

New parents place a continuous stream of $5,000 per year into a college fund which has a continuously compounding interest rate of 0.8%. what will be the value of this continuous stream after 18 years? round your answer to the nearest integer. do not include a dollar sign or commas in your answer.

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Answer from: jasmin2344

The value of this continuous stream after 18 years is going to be of 96435 dollars.

Explanation:

We solve this problem calculating the stream for each year using the following formula:

$S_{t} = S_{t-1}*(1.008)+5000$

Where St is the value of the saving stream at year t, St-1 is the value of the saving stream from the previous year and t≥0.

This formula tells us that the current value of the saving stream at a given year is equal to the past savings plus the interests on those savings, plus the deposits on the saving account that are made that year (which will only bear interests at the end of the year).

Therefore when we compute the formula for each of the 18 years we obtain the following results:

Year 0 5.000,00

Year 15.040,00

Year 210.080,32

Year 315.160,96

Year 420.282,25

Year 525.444,51

Year 630.648,06

Year 735.893,25

Year 841.180,39

Year 946.509,84

Year 1051.881,92

Year 1157.296,97

Year 1262.755,35

Year 1368.257,39

Year 1473.803,45

Year 1579.393,88

Year 1685.029,03

Year 1790.709,26

Year 1896.434,93

To conclude we can say that the value of this continuous stream after 18 years is going to be of 96,435 dollars.

Answer from: Quest

1 all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

Answer from: Quest

participate in networking opportunities that allow you to get to know potential clients, other entrepreneurs, influential people in your community, etc. focus on doing everything you can to cultivate posting word of mouth advertisin

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New parents place a continuous stream of $5,000 per year into a college fund which has a continuousl...