Stan borrows $5,500.00 at a rate of 12% interest per year.
Now, the due amount at the end of 5 years can be calculated by the formula for the due amount when it is compounded annually.
To find the due amount we can use the following formula:
[tex]A=Pe^{rt}[/tex]
Where, A is the final amount,
P is the principal amount, r is the rate of interest and t is the time duration.
We need to find A, plugging the values of P, r, and t, we get:
[tex]A=5500(e^{0.05\times 5})=5500\times e^{0.25}=5500\times 1.284=7062[/tex]
Since the interest is compounded continuously, the due amount at the end of 5 years is $7062.00.
Answer:
If Maggie invests $16,250 at a rate of 4.9%, compounded monthly, find the value of the investment after 7 years. Include your calculations in your final answer.
Step-by-step explanation:
