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Edgar accumulated $9,000 in credit card debt. If the interest rate is 20% per year and he does not make any payments for 3 years, how much will he owe on this debt in 3 years by compounding continuously?
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Edgar accumulated $9,000 in credit card debt. If the interest rate is 20% per year and he does not make any payments for 3 years, how much will he owe on this debt in 3 years by compounding continuously?

User Compoot
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1 Answer

5 votes

Answer:

$9,000e^(.20(3)) = $16,399.07

Interest owed = $7,399.07

User Mark Hillick
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