Finance Problem

scienceman2k9

Problem:

Clarissa wants to buy a new car. Her loan officer tells her that her annual rate is 8%, compuded continously, over a four-year term. Clarissa informs her loan officer that she can make qual monthly payments of $225. How much can Clarissa afford to borrow?

I figured that she will pay $10800 (48 months * $225)

Skipping the differential derivation.....

If A(t)=Ke^.08t ...whre t=4 and A(4)=10800......then k=$7842.41......is this the amount (principle) of the loan? I'm not accounting friendly :(

jpklcapp

that is correct