Edgar accumulated $5,000 in credit card debt. If the interest is 20% per year and he does not make any payment for 2 years. How

Question

ivanzaharov [21]

3 years ago

15

Edgar accumulated $5,000 in credit card debt. If the interest is 20% per year and he does not make any payment for 2 years. How

much will he owe on this debt in 2 years by compounding continously?

Mathematics

2 answers:

Nostrana [21] · Answer 1 · 2022-04-20T01:10:12+03:00

Answer:

$7,459.12

Step-by-step explanation:

The formula for continuous compounding is

A = Pe^(rt), where P is the original amount, A is the accumulated amount, r is the interest rate as a decimal fraction, and t is the number of years. We want to know how much he will owe on this original $5,000 credit card debt after 2 years.

A = $5,000e^(0.20*2)

= $7,459.12

Naddika [18.5K] · Answer 2 · 2022-04-20T02:45:23+03:00

Naddika [18.5K]3 years ago

4 0

Answer:

It’s 7,434.57

Step-by-step explanation:

It’s on my homework :/