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Edgar accumulated $5,000 in credit card debt. If the interest is 20% per year and he does not make any payment for 2 years. How much will he owe on this debt in 2 years by compounding continously?​

Respuesta :

altavistard

Answer:

$7,459.12

Step-by-step explanation:

The formula for continuous compounding is

A = Pe^(rt), where P is the original amount, A is the accumulated amount, r is the interest rate as a decimal fraction, and t is the number of years.  We want to know how much he will owe on this original $5,000 credit card debt after 2 years.

A = $5,000e^(0.20*2)

   = $7,459.12

Answer:

It’s 7,434.57

Step-by-step explanation:

It’s on my homework :/

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