septiplier
contestada

Paige borrows $4000 at a rate of 12% interest per year. What is the amount due at the end of 3 years if the interest is compounded continuously?

Respuesta :

irspow
F=Pe^(rt)

F=4000e^(.12*3)

F=4000e^(.36)

F=$5733.32

Answer: The amount due at the end of 3 years is approximately $ 5733.318.

Step-by-step explanation:

Since, the amount which is compounded continuously for t years is,

[tex]A=Pe^{rt}[/tex]

Where, P is the principal amount,

r = Rate of interest,

Here, P = $ 4000, r = 12% = 0.12, t = 3 years,

Hence, the amount due at the end of 3 years if the interest is compounded continuously,

[tex]A = 4000 e^{0.12\times 3}[/tex]

[tex]=4000\times e^{0.36}[/tex]

[tex]=4000\times 1.43332941456=5733.31765824\approx 5733.318[/tex]

Hence, the amount after 3 years will be approximately $ 5733.318.

Otras preguntas