Mathematics, 24.02.2021 22:30 ashleylit8
18. a. When Kyle was born, his grandparents invested $5,000 in a college fund that paid 4% per
year, compounded yearly. What was the value of this investment when Kyle was ready for
college at age 18? (Note that r = 0.04.)
b. If Kyle's grandparents had invested the $5,000 in a fund that paid 4% compounded con-
1 tinuously, what would have been the value of the fund after 18 years?
Answers: 2
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18. a. When Kyle was born, his grandparents invested $5,000 in a college fund that paid 4% per
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