Respuesta :
Answer:
$10579.49
Step-by-step explanation:
The formula for amount gotten after a period of time (in years) on a principal which is compounded continuously is given as:
[tex]A = P(1 + r)^t[/tex]
where P = principal (amount borrowed)
r = interest rate
t = number of years
Peter accumulated $7,500 in credit card debt with interest rate as 3.5% per year and he does not make any payments for 10 years.
Therefore, his debt is:
[tex]A = 7500(1 + \frac{3.5}{100})^{10}\\ \\A = 7500 (1 + 0.035)^{10}\\\\A = 7500(1.035)^{10}\\[/tex]
A = $10579.49
He will owe $10579.49 after 10 years
Answer:
A= $10,643.01
Step-by-step explanation:
if you are rounded to the nearest cent
Identify the values of each variable in the formula. Remember to express the percent as a decimal.
A=?
P= $7,500
r= 0.035
t= 10 years
For compounding continuously, use the formula A=Pert.
Substitute the values in the formula and compute the amount to find
A= 7,500e [tex]x^0.035.10[/tex][tex]x^{0.035.10}[/tex]
A= $10,643.01
