A young person with no initial capital invests k dollars per year at an annual rate of return r. Assume that investments are made continuously and that the return is compounded continuously.

a) Determine the sum St accumulated at any time t.

S(t)=

b) If r = 6.5%, determine k so that $1 million will be available for retirement in 39 years.

k=

c) If k=2500year, determine the return rate r that must be obtained to have $1 million available in 39 years.

r=