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Ms. Lisa Thomas borrows now (at n=0) $ 2,000,000 from a bank that charges an annual interest of 18% compounded continuously. Ms. Thomas wants to
Ms. Lisa Thomas borrows now (at n=0) $ 2,000,000 from a bank that charges an annual interest of 18% compounded continuously. Ms. Thomas wants to pay back the loan with 5 equal quarterly payments. She wants to make the first payment (out of the total 5) immediately on receipt of $ 2,000,000 (at n=0). Successive payments are spaced 3 months apart. i) What interest rate you will use the value of i to be used in the formula) for computing the size of each of the five quarterly payments ? Please keep four digits after the decimal point for the interest rate calculated in decimal (not as a percentage). Please select one of the following values, which is closer to your answer. (a) 0.0460 (b) 0.0422 (c) 0.0450 ii) What is the size of each of the five quarterly payments
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