arithmetic - word problem involving interest

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 ?

thanks!

Answer

How come you wrote the basis is $\;e\;$ and the exponent is $\;0.1995\;$ ?

I'd say the basis is $\;a:=1+\frac{19.95}{100}=1.1995\;$ , and the exponent is $\;4\;$ , so the ammount is

$$5,000\cdot(1.1995)^4\cong 10,350.73$$

assuming the interest is charged annually.