Stan borrows
$
5
,
500
at a rate of
12
%
interest per year. What is the amount due at the end of
5
years if the interest is compounded continuously? In your final answer, include your calculations.
What is the amount and how did you find the answer?
Answer:) Without compound interest, you would earn only $8800.00. This means that thanks to the power of compound interest you will earn an additional $1191.83 in interest at the end of the 5 year term.
