A certain college graduate borrows 5623 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 6 years. Also determine how much interest is paid during the -6 year period.

Question

A certain college graduate borrows 5623 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 6  years. Also determine how much interest is paid during the -6 year period.

tkhunny · Answer

What have you tried?  Could you do it if it were compounded monthly?