Question

Determine the payment to amortized the debt quarterly payments on $16,500 at 3.6% for 6 years

Answer 1

A = $769.83

Explanation:

Given data:

Principle = $16,500

rate of interest = 3.6%

Number of year = 6 year

period quarterly

Payment to be amortized can be determined by using following relation

`A = P[(r(1+r)^n)/((1+r)^n -1)]`

r is rate of interest per period is 3.6%\4 = 0.009

`n = 6* 4 = 24 period`

`A = 16500[(0.009(1+0.009)^(24))/((1+0.009)^(24) -1)]`

`A =16500[(0.01159134)/(0.239903796)]`

A = $769.83