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In: Advanced Math

A certain college graduate borrows $8,937 to buy a car. The lender charges interest at an...

A certain college graduate borrows $8,937 to buy a car. The lender charges interest at an annual rate of 16% . Assuming that interest is compounded continuously and that the borrower makes payments continuously at a constant annual rate, determine the payment rate that is required to pay off the loan in 6 years. Also determine how much interest is paid during the 6 -year period. When calculating the interest use the non-rounded value of the payment rate, then round all answers to two decimal places.

Payment rate = $_____ per year

Interest paid = $ ______ per year

This question is for a differential equations course.

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Expert Solution

Colby Messinger answered 1 year ago
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