If the interest rate is 86 compounded continuously what is t

If the interest rate is 8.6% compounded continuously, what is the required quarterly payment to repay a loan of dollar 10,000 in five years?

Solution

rate = 8.6% = 0.086 ; time = 5yrs

Amount = Principal(e^(rate*time)

= 10,000[e^(0.086*5) = 10,000*1.537 = $15370

Quarterly payments = $15370/(4*5) = $ 768.50