A certain college graduate borrows 7406 dollars to buy a car. The lender charges interest at an annual rate of 20%. Assuming that interest is compounded continuously and that the borrower makes payments continuously at a constant annual rate k dollars per year, determine the payment rate that is required to pay off the loan in 3 years. Also determine how much interest is paid during the 3-year period.
A certain college graduate borrows 7406 dollars to buy a car. The lender charges interest at an annual rate of 20%. Assuming that interest is compounded continuously and that the borrower makes payments continuously at a constant annual rate k dollars per year, determine the payment rate that is required to pay off the loan in 3 years. Also determine how much interest is paid during the 3-year period.
Chapter5: Introduction To Business Expenses
Section: Chapter Questions
Problem 61P
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