Question

sam borrows 5500 at a rate of 12% interest per year what is the amount due at the end of five years if the interest is compounded continuously

Answer 1

$ 10 021 . 65

Explanation:

The equation for continuous compounding is e^(i * t)

where i = decimal yearly interest t = years

FV = 5500 e^(.12 * 5) = 10 021 .65