## Edgar accumulated $3,000 in credit card debt. If the interest rate is 50% per year and he does not make any payments for 3 year Question Edgar accumulated$3,000 in credit card debt. If the interest rate is 50% per year and he does not make any payments for
3 years, how much will he owe on this debt in 3 years by compounding continuously?

in progress 0
6 months 2021-07-15T13:27:02+00:00 1 Answers 11 views 0

$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
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)