A certain college graduate borrows 8658 dollars to buy a car. The lender charges interest at an annual rate of 17%. 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 2 years. Also determine how much interest is paid during the 2-year period. Round your answers to two decimal places. Payment rate =| dollars per year Interest paid = dollars
A certain college graduate borrows 8658 dollars to buy a car. The lender charges interest at an annual rate of 17%. 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 2 years. Also determine how much interest is paid during the 2-year period. Round your answers to two decimal places. Payment rate =| dollars per year Interest paid = dollars
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter9: Long-term Liabilities
Section: Chapter Questions
Problem 85E: ExerciseInstallment Notes ABC bank loans $250,000 to Yossarian to purchase a new home. Yossarian...
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