A finance company offers a promotion on 2000 loans The borro

A finance company offers a promotion on $2000 loans. The borrower does not have to make any payments for the first two years, however interest will continue to be charged to the loan at 29.3% compounded continuously What amount will be due at the end of the two year period, assuming no payments are made? (Round your answer to the nearest cent.) If the promotion is extended an additional two years, and no payments are made, what amount would be due? (Round your answer to the nearest cent.)

Solution

A = Pe^(rt)

A = 2000e^(0.293 * 2)

A = 2000e^(0.586)

A = 2000(1.7967868744202726)

A = 3593.57 dollars

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Added two yrs :
A = 2000e^(0.293 * 4)

A = 6456.88 dollars

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2)

i = 5 - 2e^(-11t)

When t --> inf,
e^(-11t) approaches e^-inf, i.e 0

i = 5 - 2(0)

i = 5