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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

Which one is it and how did you get it?

Respuesta :

calculista

Answer:

[tex]\$30,248.35[/tex]  

Step-by-step explanation:

we know that

The formula to calculate continuously compounded interest is equal to

[tex]A=P(e)^{rt}[/tex]  

where  

A is the Final Amount due  

P is the amount of money borrowed

r is the rate of interest in decimal  

t is Number of Time Periods  

e is the mathematical constant number

we have  

[tex]t=7\ years\\ P=\$8,000\\ r=19\%=19/100=0.19[/tex]  

substitute in the formula above  

[tex]A=8,000(e)^{0.19*7}[/tex]  

[tex]A=8,000(e)^{1.33}[/tex]  

[tex]A=\$30,248.35[/tex]