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    Compound Interest

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    If the tuition at a certain college is determined to cost $ 32000 in 10 years, how large must a trust fund that pays 7.5% compounded continuously be, in order for a child on her 8th birthday to ensure sufficient funds at age 18?

    © BrainMass Inc. brainmass.com March 4, 2021, 5:36 pm ad1c9bdddf
    https://brainmass.com/math/calculus-and-analysis/compound-interest-2089

    Solution Summary

    This shows how to use compound interest to determine present value needed for a given future value.

    $2.49

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