What nominal interest rate and compounded continuously

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Reference no: EM131979150

1. A small business owner visit his bank to ask for a loan. The owner states that he can repay a loan at $2700 per month for the next three years and then $1700 per month for two years after that. If the bank is charging customers 9.00 percent APR how much would it be willing to lend the business owner?

2. In order to purchase your first home 6 years from today, you need a down payment of $40,000. You currently have $20,000 to invest. To achieve your goal, what nominal interest rate, compounded continuously, must you earn on this investment?

Reference no: EM131979150

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