Turkcell . 23:43 webwork.ticaret.edu.tr VorK WeBWorK 201 7Fall-ENG227 Hw4 5 IW4:

Question

Turkcell . 23:43 webwork.ticaret.edu.tr VorK WeBWorK 201 7Fall-ENG227 Hw4 5 IW4: Problem 1 pt) A young person with no initial capital invests k dollars per year in a retirement account at an annual rate of return 0.09. Assume that investments are made continuously and that the return is compounded continuously Determine a formula for the sum S(t) --(this will involve the parameter k): S(t) = What value of k will provide 2661000 dollars in 47 years? ote: You can earn partial credit on this problem. ou have attempted this problem 0 times. You have unlimited attempts remaining. Page generated at 12/09/2017 at 09:49pm EET WeBWorK © 2000-2007 TheweBWorkProject

Explanation / Answer

S(t)=k*((1.09)^(47))
If k rupees is invested today and annual rate of return is 0.09, then after one year it will be worth k*(1.09).
Similarly after one more year (i.e. 2 years in total) it will be k*(1.09) multiplied by 1.09 i.e equal to k*(1.09)*(1.09).
So after 47 years it will be k*((1.09)^(47)).

k=2661000/((1.09)^(47))=46344.64

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