If you borrow $5000 at an APR of r (as a decimal) from a lending institution that compounds interest continuously, and if you wish to pay off the note in 3 years, then your monthly payment M, in dollars, can be calculated using M = 5000(e"/12 – 1) 1 - e-3r Your budget will allow a payment of $175 per month, and you are shopping for an interest rate that will give a payment of this size. What interest rate do you need to find? (Round your answer to two decimal places.) %
If you borrow $5000 at an APR of r (as a decimal) from a lending institution that compounds interest continuously, and if you wish to pay off the note in 3 years, then your monthly payment M, in dollars, can be calculated using M = 5000(e"/12 – 1) 1 - e-3r Your budget will allow a payment of $175 per month, and you are shopping for an interest rate that will give a payment of this size. What interest rate do you need to find? (Round your answer to two decimal places.) %
Chapter4: Time Value Of Money
Section4.17: Amortized Loans
Problem 1ST
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