Find the value of i, Mrs. B borrows an amount of $75,000

Find the value of i

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Question - Mrs. B borrows an amount of $75,000 today and agrees to make monthly interest payments to the lender. The first payment is made 1 month after today. The loan charges interest at an annual nominal interest rate i convertible continuously. At the same time, she makes monthly deposit into a sinking fund at the end of every month. The amount of each deposit is $1200 and the first deposit is made 1 month after today. The fund earns interest rate at a monthly effective interest rate 0.82%. The borrower will repay the loan principal immediately once the account balance exceeds the loan principal at some repayment date. You are given that the total amount paid by the borrower over the entire loan is $99036.627. Find the value of i.

Reference no: EM132208186

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