Q:

Connor borrows $8,000 at a rate of 19% interest per year. What is the amount due at the end of 7 years if the interest is compounded continuously?$14,576.95$29,215.37$30,248.35$43,791.58Which one is it and how did you get it?

Accepted Solution

A:
Answer:[tex]\$30,248.35[/tex]  Step-by-step explanation:we know that The formula to calculate continuously compounded interest is equal to [tex]A=P(e)^{rt}[/tex]  where  A is the Final Amount due  P is the amount of money borrowedr is the rate of interest in decimal  t is Number of Time Periods  e is the mathematical constant number we have  [tex]t=7\ years\\ P=\$8,000\\ r=19\%=19/100=0.19[/tex]  substitute in the formula above  [tex]A=8,000(e)^{0.19*7}[/tex]  [tex]A=8,000(e)^{1.33}[/tex]  [tex]A=\$30,248.35[/tex]