(adsbygoogle = window.adsbygoogle || []).push({}); intrest rates/investment problem (pert), I just need someone to check my work:)

1. The problem statement, all variables and given/known data

1)Cindy requires $10,000 in 3 years to return to college to get and MBA degree. How much money should she ask her parent for now so that, if she invests it at 12% compounded continuously, she will have enough for school?

2)Carla just inherited a building that is worth $250,000. The building is in a high demand area, and the value of the building is projected to increase at a rate of 25% per year for the next 4 years. How much more money will she make if she waits for four years to sell the building instead of selling it now?

2. Relevant equations

P=Ae^(-rt)

3. The attempt at a solution

1)so the equation would be

P= (10,000)e^(-.12*3) which equals $6,977 correct?

2)A=Pe^(rt)

A= $250,000e^(.12*4) = $679,570

so then $679,570-$250,000=$429,570

is all that correct?

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# Homework Help: Intrest rates/investment problem (pert), I just need someone to check my work

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