Question

Karen borrowed a sum of money for some big screen TVs and a waterfall for her restaurant. If she borrowed $10,200 and received a 3.85 % interest rate compounded continuously, how much did Karen pay in interest over a 7 year period? Round your answer to the nearest whole number​

Answer 1

3155

Explanation:

Continously compounding interest formula:

PV*e^(rt)

10200*e^(.0385*7)=13354.95825

To find the amount of interest paid subtract the original amount

13354.95825-10200=3154.958249

which rounds to

3155