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?

$14,576.95
$29,215.37
$30,248.35
$43,791.58

Answer 1

the third one




Hope this helps :D

Answer 2

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