202k views
3 votes
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
$43,791.58

2 Answers

5 votes
the third one




Hope this helps :D
User Ryan Plant
by
8.5k points
3 votes

Answer:

The correct option will be: $30,248.35

Explanation:

Continuous compound interest formula:
A= P*e^r^t , where
P= Initial amount,
A= Final amount,
r= rate of interest in decimal form and
t= time duration.

Here,
P= $8000, r= 19\%= 0.19 and
t= 7

So, plugging these values into the above formula....


A= 8000* e^(^0^.^1^9^)^(^7^)\\ \\ A= 8000*e^1^.^3^3\\ \\ A= 30248.3471...\approx 30248.35

So, the amount due at the end of 7 years will be $30,248.35

User Nishanth Matha
by
7.4k points