Problem
College students are now graduating with loan debts averaging $24,000.
a. If students repay their loan of $24,000 over 10 years with an annual effective interest rate of 8.3%, what will their annual payment be?
b. What is the annual payment going to be when the interest rate is 9.6%, continuously compounded each year?
c. What is the effective interest rate in Part (b)?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.