Question

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

Answer 1

my answer gave me 30,498.68 for some reason but the answer is 30258.35

Explanation:

do this formula A(t)=p(1+r/n)^nt

A(t) = amount after t years

P = initial amount

r = interest rate

n = number of times interest is compounded per year

t = number of years

Answer 2

The formula for continuous compound interest is given by:

A=P e^(rt) ........... (shown in figure)

here P =$8000

r=0.19

t=7

Plugging the values in given formula we get :

A=8000(e^(0.19*7)

A=$30248.34710....