Suppose that $3700 is borrowed for seven years at an interest rate of 2.5% per year, compounded continuously. Find the amount owed, assuming nopayments are made until the end.Do not round any intermediate

Richard N asked Oct 17, 2023

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Richard N asked Oct 17, 2023

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12 votes

Using the formula for continuously compound interest we get:

$M=3700(e)^(0.025\cdot7)=3700e^(0.175)=4407.61$

Therefore, the total amount owed is $4407.61.

Sflow answered Oct 22, 2023

by Sflow

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