Question

Edgar accumulated $5,000 in credit card debt. If the interest rate is 10% per year and he does not make any payments for 3 years, how much will he owe on this debt in 3 years by compounding continuously?

Answer 1

9514 1404 393

Answer:

$6749.29

Explanation:

The balance is given by ...

A = Pe^(rt)

A = $5000·e^(0.10·3) ≈ $6749.29

Edgar will owe $6749.29.