Question

Paige borrows $4000 at a rate of 12% interest per year. What is the amount due at the end of 3 years if the interest is compounded continuously?

Answer 1

like a first step - after the first year how much will be this sum ? how many is the 12% of $4000 ?

Answer 2

for continuous compounding

A = Pe^(rt) where P is the principal (4,000), e is a constant, r is the interest rate (0.12), t is time (3 years), A is the ending amount