en

English

Español

Português

Français

Deutsch

Italiano

Русский

中文(简体)

한국어

日本語

Tiếng Việt

עברית

العربية

Popular Word Problems >

A certain loan program offers an interest rate of 5% per year, compounded continuously. Assuming no payments are made, how much would be owed after seven years on a loan of 3700 dollars?

Solution

A cer t ain l o an p ro g r am o ff ers an in t eres t r a t e o f 5% p er ye a r, co m p o u n d e d co n t in u o u s l y . A ss u min g n o p a y m e n t s a re ma d e, h o w m u c h w o u l d b e o w e d a f t er se v e n ye a rs o n a l o an o f 3700 d o ll a rs ?

Solution

Amount : 5250.55

Solution steps

Translate the problem into an equation:

A = 3700 e^{0.05 \cdot 7}

3700 e^{0.05 \cdot 7} = 5250.54992 \dots

Round to the nearest hundredth:

5250.55

Amount : 5250.55

Popular Examples

Three multiplied by the sum of 4 and a number is the same as 18 more than the number.:Find the number.What is the circumference of a circle with a radius of 7.5 centimeters? Use 3.14 for pi. Round to the nearest hundredth if necessary.a shirt is priced at 24.50. There is a 8% sales tax rate. What is the sales tax fro the shirt in dollars and cents?Jack is twice as old as Lacy. In 3 years the sum of their ages will be 54 a pair of dice is rolled. what is the probability of getting a sum greater than 7