suppose that $3500 is borrowed for three years at an interest rate of 4% per year. compounded continuously. find the amount owed, assuming no payments are made till the end. Round to the nearest cent.
4 answers
3500 * e^(.04*3)
3946.24
A=P(1+r/n)^(nt)
P=3500, r=4%=0.04,t=3,n=1
A=3500(1+(0.04/1))^(3×1)=3500(1.04)^3
A=3500(1.124864)=3937.024=3937.00 (rounded to nearest cent)
P=3500, r=4%=0.04,t=3,n=1
A=3500(1+(0.04/1))^(3×1)=3500(1.04)^3
A=3500(1.124864)=3937.024=3937.00 (rounded to nearest cent)
Your calculation is correct, but I think there's a small error in the final rounding. The amount owed should be rounded to $3937.02 to the nearest cent.