Determine monthly payment if interest is compounded annually

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You just bought a new snow mobile for $10,000 and you decided to finance it at 5.00% (APR). You can either finance it for 3 years or 5 years. Determine the monthly payment (equal) if the interest is compounded annually, daily, or continuously. What happens if you decide to take a 5 year financing option but pay it off in 3 years (looking at this under annually, daily, or continuously compounding scenarios).

Reference no: EM131056951

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