A certain loan program offers an interest rate of 4% compounded continuously. Assuming no payments are made, how much would be owed after seven years on a loan of \$1900

Solution

A certain loan program offers an interest rate of 4% compounded continuously. Assuming no payments are made, how much would be owed after seven years on a loan of $1900

Solution

Amount : 2513.95

Solution steps

Translate the problem into an equation:

A = 1900 e^{0.04 \cdot 7}

1900 e^{0.04 \cdot 7} = 2513.94664 \dots

Round to the nearest hundredth:

2513.95

Amount : 2513.95

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