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12 March, 07:54

Connor borrows $8,000 at a rate of 19% interest per year. What is the amount due at the end of 7 years if the interest is compounded continuously?

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  1. 12 March, 08:03
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    A = p (1 + r*t)

    A = Amount

    p = Principal (8,000)

    r = rate (0.19)

    t = time (7)

    A = 8000 (1 + 0.19*7)

    A = 8000 (1 + 1.33)

    A = 8000 (2.33)

    A = 18640

    Therefore he will need to pay $18640 at the end of 7 years.
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