Question 13, 6.7.45
HW Scorc: $58.33 \%, 10.5$ of 18 points
(3) Pointsio of 1
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Jerome will be buying a used car for $\$ 8,000$ in 4 years. How much money should he ask his parents for now so that, if he invests it at $8 \%$ compounded continuously, he wil have enough to buy car?

Jerome should ask for $5 \square$
(Round to the nearest cent as needed.)

Step 1 ：Given that Jerome will be buying a used car for $8000 in 4 years.

Step 2 ：He wants to know how much money he should ask his parents for now so that, if he invests it at an interest rate of 8% compounded continuously, he will have enough to buy the car.

Step 3 ：We can calculate the present value using the formula for continuous compounding: \(P = A / e^{rt}\), where \(P\) is the present value, \(A\) is the future value, \(r\) is the interest rate, and \(t\) is the time in years.

Step 4 ：Substituting the given values into the formula, we get \(P = 8000 / e^{0.08 \times 4}\).

Step 5 ：Calculating the above expression, we find that \(P = 5809.19\).

Step 6 ：So, Jerome should ask his parents for \(\boxed{\$5809.19}\).