Question

Alex loans Nomar $200,000 at a rate of 4% nominal interest convertible quarterly. They agree that Nomar will repay the loan by making quarterly payments. These payments will each be $25,000 except for the last payment which will be a drop payment. Find the total length of the loan and the amount of the final payment.

Answer 1

2 years or 8 quarterly payments

$9,429.58

Step-by-step explanation:

Please see attachment .