Question

Paige borrows $4000 at a rate of 12% interest per year. What is the amount due at the end of 3 years if the interest is compounded continuously? $4,480 $5733.31 $5,733.32 $5,440

Answer 1

$5,733.32

Explanation:

I would put more but the other answer basically covered what I was gonna say

Answer 2

$5733.32

Explanation:

Use this formula for continuous compounding:

A = Pe^(r*t), where P is the principal amount, r is the interest rate as a decimal fraction, and t is the number of years.

Then:

A = $4000e^(0.12*3) = $5733.32