Edgar accumulated $5,000 in credit card debt. If the interest rate is 20% per year, and he does not make any payments for 2 years, how much will he owe (in dollars) on this debt in 2 years by each method of compounding? (Simplify your answers completely. Round your answers to the nearest cent.) (a) compound quarterly (b) compound monthly (c) compound continuously $

Intermediate Algebra
19th Edition
ISBN:9780998625720
Author:Lynn Marecek
Publisher:Lynn Marecek
Chapter10: Exponential And Logarithmic Functions
Section: Chapter Questions
Problem 455PT: Megan invested $21,000 in a savings account. If the interest rate is 5%, how much will be in the...
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Edgar accumulated $5,000 in credit card debt. If the interest rate is 20% per year, and he does not make any payments for
2 years, how much will he owe (in dollars) on this debt in 2 years by each method of compounding? (Simplify your answers
completely. Round your answers to the nearest cent.)
(a) compound quarterly
(b) compound monthly
(c) compound continuously
$
Transcribed Image Text:Edgar accumulated $5,000 in credit card debt. If the interest rate is 20% per year, and he does not make any payments for 2 years, how much will he owe (in dollars) on this debt in 2 years by each method of compounding? (Simplify your answers completely. Round your answers to the nearest cent.) (a) compound quarterly (b) compound monthly (c) compound continuously $
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