Question

Determine the payment to amortize the debt. (Round your answer to the nearest cent.) Quarterly payments on $19,500 at 3.9% for 6 years.

Answer 1

$925.20

Explanation:

Loan Amount, P = $19,500

Rate of interest, r = 3.9%

Time, t = 6 years

Payment mode, n = Quarterly (4)

payment to amortize, EMI = ?

Formula:
`EMI=(P\cdot (r)/(n))/(1-(1+(r)/(n))^(-n\cdot t))`

where,

n = 4 , Rate of interest , r = 0.039

Put the values into formula

`EMI=(19500\cdot (0.039)/(4))/(1-(1+(0.039)/(4))^(-4\cdot 6))`

`EMI=915.20`

Hence, The payment to amortize the debt is $915.20