Answered

Westonci.ca is your trusted source for finding answers to a wide range of questions, backed by a knowledgeable community. Get immediate and reliable solutions to your questions from a community of experienced experts on our Q&A platform. Get immediate and reliable solutions to your questions from a community of experienced professionals on our platform.

. Sam Rothstein wants to borrow $15,500 to be repaid in quarterly installments over five years at 16% compounded quarterly. How much will his payment be

Sagot :

Tundexi

Answer:

$1,140.52 per Quarter

Explanation:

Loan Amount (P) = $15,500

Quarterly Interest Rate (n) = 4.00% [16.00% / 4]

Number of period (n) = 20 Periods [5 * 4]

Quarterly Loan Payment = [P * {r*(1+r)^n} ] / [(1+r)^n - 1]

= [$15,500 * {0.04 * (1+0.04)^20}] / [(1+0.04)^20 - 1]

= [$15,500 * {0.04 * 2.1911231}] / [2.1911231 - 1]

= [$15,500*0.0876449] / 1.1911231

= $1,358.50 / 1.1911231

= $1,140.52 per Quarter

Thanks for using our service. We aim to provide the most accurate answers for all your queries. Visit us again for more insights. Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. Get the answers you need at Westonci.ca. Stay informed by returning for our latest expert advice.