Question 1153441
continuous compound formula is f = p * e ^ (r * t)
f is the future value
p is the present value
e is the scientific constant of 2.718281828.....
r is the interest rate per time period (years in this case)
t is the number of time periods (years in this case)>
in your problem, the formula becomes:
f = 3000 * e ^ (.065 * 4) = 3890.79026 rounded to nearest cent = 3890.79
that's what will be in the account in 4 years.
since the cost of the car is 4000, he will have to pay an additional 4000 - 3890.79 = 109.21.