A couple took out a 5-year $30,000 loan to pay for for their wedding. After 5 years, the loan payments they had made to the bank amounted to $38,250.
The interest rate on the loan, compounded continuously, is %. If they had taken an 8-year loan instead of a 5-year loan, they would have paid approximately $more.
The interest rate on the loan, compounded continuously, is 4.9%. If they had taken an 8-year loan instead of a 5-year loan, they would have paid approximately $6,150 more.
