Question

Find the amount of money a woman owes at the end of 3 years if 5% interest is compounded continuously on her $2500 debt

Answer 1

$ 2904.59

Explanation:

For CONTINUOUS compounding FV = PV e^it

FV = future value PV = present value i = decimal interest t = years

FV = 2500 e^(.05 * 3) = 2904.59