College students are now graduating with loan debts averaging $24,000. a. If students repay their loan of

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College students are now graduating with loan debts averaging $24,000.
a. If students repay their loan of $24,000 over 10 years with an annual effective interest rate of 8.3%, what will their annual payment be?

b. What is the annual payment going to be when the interest rate is 9.6%, continuously compounded each year?
c. What is the effective interest rate in Part (b)?

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Engineering Economy

ISBN: 978-0133439274

16th edition

Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

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