You Have a Bank Account That Earns 9% Nominal Annual

question 9

Short Answer

You have a bank account that earns 9% nominal annual interest compounded continuously, and you want to have $90,000 in the bank account in five years so that you can buy a brand new Porsche.How much money would you have to deposit in one lump sum today so that the account balance would be $90,000 in five years? Round to the nearest dollar.

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Definitions:

Imminent Lawless Action

A legal standard for limiting free speech established by the U.S. Supreme Court, intended to prevent advocacy of illegal action if imminent.

Prior Restraint

Censorship imposed, usually by a government, to prohibit expression or publication before the material is actually communicated.

Obscenity

Material or content considered to be offensive or lacking in serious literary, artistic, political, or scientific value, subject to government regulation or censorship.

Lemon Test

A three-pronged criterion used by courts to decide if a law violates the Establishment Clause of the First Amendment.