Upon entering college, Meagan borrowed the limit of $5000 on her credit card to help pay for expenses. The credit company charges 19.95 % interest compounded continuously. How much will Meagan owe when she graduates in four years ?
I wanted to use
A(t)=A(0)e^rt, and r=19.95%, t=4, A(0)=5000
so I was thinking
A(t) = A(0)e^(rt) A = (5,000)e^(.1995)(4)
Am I doing this correctly ? how do I calculate the rest? Is this is all I need ?