Mark became overextended in his gambling debt and could not pay $750 he owed. The loan person said he could have five weeks to pay off the $750 at 8% interest per week compounded continuously. How much will Mark have to pay at the end of the five weeks? Please round the answer to the nearest hundredth.
A) $1,118.87
B) $1,119.07
C) $1,119.02
D) $1,118.97
E) $1,118.92

Question

Quizplus · Accepted Answer

The correct answer is A.The amount of money Mark will have to pay at the end of the five weeks can be calculated using the formula:A = P * e^(rt)where:P is the principal amount (the amount of money Mark borrowed),r is the annual interest rate (8%),t is the time in years (5 weeks / 52 weeks/year = 0.0962 years).Plugging in the values, we get:A = 750 * e^(0.08 * 0.0962)A = 750 * e^0.0077A = 750 * 1.0077A = $755.78Rounding to the nearest hundredth, Mark will have to pay $755.78 at the end of the five weeks.

Mark Became Overextended in His Gambling Debt and Could Not