Explanation:
With continuous compounding at 9% per annum, the monthly growth factor is:
Monthly interest on $1,000 is therefore:
So the monthly interest payment is $7.53.
Ultimate access to all questions.
$1,000 loan as 9.0% per annum with continuous compounding but the interest is actually paid monthly. What are the monthly interest payments?A
a) $7.47
B
b) $7.50
C
c) $7.53
D
d) $7.59
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