A certain loan program offers an interest rate of 3.5% per year, compounded continuously. Assuming no payments are made, how much would be owed after four years on a loan of \$1900? Do not round any intermediate computations, and round your answer to the nearest cent.

Solution

A certain loan program offers an interest rate of 3.5% per year, compounded continuously. Assuming no payments are made, how much would be owed after four years on a loan of $1900? Do not round any intermediate computations, and round your answer to the nearest cent.

Solution

Amount : 2185.52

Solution steps

Translate the problem into an equation:

A = 1900 e^{0.035 \cdot 4}

1900 e^{0.035 \cdot 4} = 2185.52021 \dots

Round to the nearest hundredth:

2185.52

Amount : 2185.52

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