Question

Edgar accumulated $5000 in credit card debt if the interest rate is 50% per year and he does not have to make any payments for five years how much will he go on his debt in five years by compounding continuously.

Answer 1

$ 60 912.46 owed in five years

Explanation:

FIFTY percent <====== crazy ! This is .5 in decimal form

FV = Future Value = PV e^(i*t)

PV = present value i = interest in decimal form t = years

5000 e^(.5 * 5 ) = 60912.46