A certain college graduate borrows 8674 dollars to buy a car. The lender charges

Question

A certain college graduate borrows 8674 dollars to buy a car. The lender charges interest at an annual rate of 18 %. 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. When calculating the interest use the nonrounded value of the payment rate, then round all answers to two decimal places.

hese are the options

payment rate = 3741.91 dollars per year,
interest paid = 2451.74 dollars.



payment rate = 3841.91 dollars per year,
interest paid = 2651.74 dollars.



payment rate = 3641.91 dollars per year,
interest paid = 2451.74 dollars.



payment rate = 3641.91 dollars per year,
interest paid = 2651.74 dollars.



payment rate = 3741.91 dollars per year,
interest paid = 2551.74 dollars.

Explanation / Answer

payment rate = 3641.91 dollars per year, interest paid = 2651.74 dollars.

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.