A certain loan program offers an interest rate of 7%

interest-rate

#1

A certain loan program offers an interest rate of 7%, compounded continuously. Assuming no payments are made, how much would be owed after three years on a loan of $2500 ? Do not round any intermediate computations, and round your answer to the nearest cent.

Answer:

p = $2500
r = 7%=.07
t =3years
A =?
A = p(1+r%)^t
A = 2500(1+.07)^3
A = $3062.61