MATH S.

# Grandparents of a new-born child want to invest money in a college fund so that their grandchild will have $50,000 at the age 18. The interest rate at the bank Grandparents of a new-born child want to invest money in a college fund so that their grandchild will have$50,000 at the age 18. The interest rate at the bank is 4.25%. If the maximum amount that the grandparents have to invest is $5,000, what interest rate(continuously compounded interest) would they need to have$50,000 in 18 years?

By:

Tutor
5 (11)

Professor of Accounting, retired. Ph.D., CPA

## Still looking for help? Get the right answer, fast.

Get a free answer to a quick problem.
Most questions answered within 4 hours.

#### OR

Choose an expert and meet online. No packages or subscriptions, pay only for the time you need.