Find the payment necessary to amortize a 4% loan of $ 1300 compounded quaterly, with...

on2t1inf8b

on2t1inf8b

Answered

2022-07-26

Find the payment necessary to amortize a 4% loan of $ 1300 compounded quaterly, with 11 quarterly payments.

Answer & Explanation

gutsy8v

gutsy8v

Expert

2022-07-27Added 14 answers

Formulafor calculating compound interest:
A = P ( 1 + r n ) n t
Where,
P =principal amount (initial investment)
r =annual nominal interest rate (as a decimal)
n =number of times the interest is compounded peryear
t =number of years
A =amount after time ht
together nt = total no.periods
Aloan of $1300 at rate of 4% and it gets compounded quarterlyfor 11 quarters.
so,P = 1300$
nt= 11 quarters
r =4% = 4/100 = 0.04
so after 11 quarters the balance is,
A = 1300 ( 1 + 0.04 / 4 ) 11 = 1450.37 $
Answer:- payment necessary to amortize the given loan is = 1450.37 $

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