It Is Estimated That in Fifteen Years, It Will Cost

Short Answer

It is estimated that in fifteen years, it will cost $200,000 to send a child to a four-year college.Suppose you want to set up an account at a bank that offers 8% nominal annual interest compounded continuously, so that 20 years from today, the account has $200,000 in it for your child's college education.Determine at what constant continuous rate K dollars per year you would need to deposit money as follows:
Set up a differential equation for the rate of change of your bank balance, where B = f(t)is your bank balance at time t.Next, solve this differential equation for an initial balance of zero.Finally, use this result find K (to the nearest dollar).