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prisoha [69]
3 years ago
6

Edgar accumulated $3,000 in credit card debt. If the interest rate is 50% per year and he does not make any payments for

Mathematics
1 answer:
Anestetic [448]3 years ago
8 0

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

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

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AlekseyPX

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2 years ago
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8 0
3 years ago
Read 2 more answers
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