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Question 5.4: A person borrows $5000 for 3 years, to be repaid in 36 equal......

A person borrows $5000 for 3 years, to be repaid in 36 equal monthly installments. The interest rate is 10% per year, compounded continuously. How much money must be repaid at the end of each month?

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Calculating [A/P, 10%, 12,36] by (5.6), we have

A/P  =  \frac{e^r  –  1}{1  –  e^{-m}}    (5.6) \\\\ A  =  \$5000\frac{e^{0.10/12}  –  1}{1  –  e^{-0.30}}  =  \$161.43

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