A certain college graduate borrows 8549 dollars to buy a car. The lender charges interest at an annual rate of 12%. 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. Round your answers to two decimal places. Payment rate = i dollars per year Interest paid dollars

A certain college graduate borrows 8549 dollars to buy a car. The lender charges interest at an annual rate of 12%. 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. Round your answers to two decimal places. Payment rate = i dollars per year Interest paid dollars

College Algebra

7th Edition

ISBN:9781305115545

Author:James Stewart, Lothar Redlin, Saleem Watson

Publisher:James Stewart, Lothar Redlin, Saleem Watson

Chapter4: Exponential And Logarithmic Functions

Section: Chapter Questions

Problem 11T: Suppose that $12,000 is invested in a saving account paying 5.6% interest per year. (a)Write the...

See similar textbooks

Similar questions

Suppose that $12,000 is invested in a saving account paying 5.6% interest per year. (a)Write the formula for the amount in the account after t years if interest is compounded monthly. (b)Find the amount in the after 3 years if interest is compounded daily. (c)How long will it take for the amount in the account to grow to $20,000 if interest iscompounded continuously?
An investment account with an annual interest rateof 7 was opened with an initial deposit of 4,000 Compare the values of the account after 9 yearswhen the interest is compounded annually, quarterly,monthly, and continuously.
An investment account was opened with aninitial deposit of 9,600 and earns 7.4 interest,compounded continuously. How much will theaccount be worth after 15 years?
According to your model, what is the length of the sunspot cycle (in years)? In 1848, Rudolph Wolf determined the length of the sunspot cycle to be 11.1 years. How does your value compare with his?