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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

Respuesta :

the third one




Hope this helps :D

Answer:

The correct option will be:   $30,248.35

Step-by-step explanation:

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

Here,  [tex]P= $8000, r= 19\%= 0.19[/tex] and [tex]t= 7[/tex]

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

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

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

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