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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.) %

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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HW 2.4. Please help
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 5000(e/12 – 1) 1 - e-3r M = 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.) %
Transcribed Image Text: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 5000(e/12 – 1) 1 - e-3r M = 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.) %
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