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spayn [35]
2 years ago
11

Alex borrows $2500 from a bank that has a rate of 5.5% with continuous compounding. How much does he owe after 2 years? Round to

the nearest hundredths.
Mathematics
1 answer:
Vesnalui [34]2 years ago
3 0

Answer:

$5282.70

Step-by-step explanation:

the formula for calculating future value when there is continuous compounding is : A x e^r x N

A= amount e = 2.7182818

N = number of years

r = interest rate

2500x e^0.055 x 2 = 5282.70

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