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2022-07-26

Find the payment necessary to amortize a 4% loan of $1300 compounded quaterly, with 11 quarterly payments. Answer & Explanation gutsy8v Expert 2022-07-27Added 14 answers Formulafor calculating compound interest: $A=P\left(1+\frac{r}{n}{\right)}^{nt}$ 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, $A=1300\ast \left(1+0.04/4{\right)}^{11}=1450.37$ Answer:- payment necessary to amortize the given loan is = 1450.37$

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