# Loan repayment/interest paid

#### alane1994

##### Active member
If a mod would like to change the title to something more fitting feel free.

A certain college graduate borrows 8,000 dollars to buy a car. The lender charges interest at an annual rate of 10%. Assuming that interest is compounded continuously and that the borrower makes payments continuously at a constant annual rate $k$, determine the payment rate $k$ that is required to pay off the loan in 3 years. Also determine how much interest is paid during the 3-year period.

Staff member

#### alane1994

##### Active member
Re: Not sure what to title.

Well, hey, would you look at that
I am going to look over your work, and try and make sense of it for me. Then I will attempt the second part of the problem. If I get nowhere, I shall come running to my buddies for help!

#### alane1994

##### Active member
Thanks very much for the help, I really appreciate it!