Nancy borrows $5000 at a rate of 16% interest per year. what is the amount due at the end of 5 years if the interest is compounded continuously? $800 $11,127.70 $5,800 $11,000

x
=$10501.71. <----- Her final amount due

Hi there

The formula of the interest of compounded continuously is
A=pe^rt
A=5,000×e^(0.16×5)
A=11,127.70

Hope it helps

If nancy borrows $5000 at a rate of 16% interest per year, the amount due at the end of 5 years if the interest is compounded continuously would be $9000. first, we get what is 16% of 5000 which is 800 and multiply this by 5, which gives us the answer of 4000. add this 5000 which gives us the total of 9000. hope this .