Stan borrows $5,500 at a rate of 12% interest per year. What is the amount due at the end of 5 years if the interest is compound

Question

I am Lyosha [343]

3 years ago

5

Stan borrows $5,500 at a rate of 12% interest per year. What is the amount due at the end of 5 years if the interest is compound

ed continuously? In your final answer, include your calculations. PLEASE EXPLAIN.

Mathematics

1 answer:

kolbaska11 [484] · Answer 1 · 2022-01-03T02:06:29+03:00

kolbaska11 [484]3 years ago

7 0

<span>Without compound interest, Stan would earn only $8,800.00. This means that thanks to the power of compound interest Stan will earn an additional $1,191.83 in interest at the end of the 5-year-term.</span>