A certain college graduate borrows $8,937 to buy a car. Thelender charges interest at an annual rate of 16% . Assuming thatinterest is compounded continuously and that the borrower makespayments continuously at a constant annual rate, determine thepayment rate that is required to pay off the loan in 6 years. Alsodetermine how much interest is paid during the 6 -year period. Whencalculating the interest use the non-rounded value of the paymentrate, then round all answers to two decimal places.
Payment rate = $_____ per year
Interest paid = $ ______ per year
This question is for a differential equations course.
