3 1m 11 11. Mrs. Tran would like to finance for a car loan of $25,700. The bank offers her a loan with an annual 5.7% interest rate compounded continuously. Assume a present value of the income flow, how much will her monthly payment be if she plans to finance for six years. inuously at the constant rate of $3,500 per year for 18 пр al 1-3x²

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter4: Time Value Of Money
Section4.17: Amortized Loans
Problem 1ST
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1m 11
11. Mrs. Tran would like to finance for a car loan of $25,700. The bank offers her a loan with an
annual 5.7% interest rate compounded continuously. Assume a present value of the income flow, how
much will her monthly payment be if she plans to finance for six years.
inuously at the constant rate of $3,500 per year for 18
пр
al
1-3x²
Transcribed Image Text:3 1m 11 11. Mrs. Tran would like to finance for a car loan of $25,700. The bank offers her a loan with an annual 5.7% interest rate compounded continuously. Assume a present value of the income flow, how much will her monthly payment be if she plans to finance for six years. inuously at the constant rate of $3,500 per year for 18 пр al 1-3x²
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