MATH SOLVE

5 months ago

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]