The Bank quotes the interest rate on loans as 12% per annum continuously compounded. The interest...

The Bank quotes the interest rate on loans as 12% per annum continuously compounded. The interest is actually paid monthly on a $6911 loan. What is the interest payment (in $) of this loan per month?

Expert Solution

We see that the interest payment per month is given as=(exp(12%/12)-1)*6911
=69.45670472

jeff jeffy answered 2 years ago

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