A lender requires 3.1% as the compensation for deferred consumption and 1.4% as the compensation for default risk. The inflation rate is expected to be 1.2% and the lender charges 0.9% to compensate for unexpected inflation. All the rates are annual rates compounded continuously. Calculate the annual interest rate compounded continuously the lender should charge on the loan. A lender requires 3.1% as the compensation for deferred consumption and 1.4% as the compensation for default risk. The inflation rate is expected to be 1.2% and the lender charges 0.9% to compensate for unexpected inflation. All the rates are annual rates compounded continuously. Calculate the annual interest rate compounded continuously the lender should charge on the loan