Final answer:
Edgar will owe approximately $6,360.92 on his credit card debt in 2 years with continuous compounding.
Step-by-step explanation:
To calculate the amount Edgar will owe on his credit card debt in 2 years with continuous compounding, we can use the formula for compound interest:
A = P*e^(rt)
Where:
- A is the final amount
- P is the initial principal (the amount Edgar owes)
- e is Euler's number (approximately equal to 2.71828)
- r is the interest rate per year in decimal form
- t is the time in years
Plugging in the values, we have:
A = $5,000 * e^(0.20*2)
Calculating this expression gives the approximate value of $6,360.92. Therefore, Edgar will owe approximately $6,360.92 on his credit card debt in 2 years with continuous compounding.