Question

"determine the quarterly payment on a 3 year loan of $13,010 at 5.6% compounded quarterly. Round you answer to the nearest cent." (not to sure what it means by compounded quarterly)

a.
$1,183.23
c.
$1,185.34
b.
$1,517.95
d.
$11,832.23

Answer 1

`\bf \qquad \qquad \textit{Amortized Loan Value} \\\\ pymt=P\left[ \cfrac{(r)/(n)}{1-\left( 1+ (r)/(n)\right)^(-nt)} \right] \\\\\\ \qquad \begin{cases} P= \begin{array}{llll} \textit{original amount}\\ \end{array}\to & \begin{array}{llll} 1,310 \end{array}\\ pymt=\textit{periodic payments}\\ r=rate\to 5.6\%\to (5.6)/(100)\to &0.056\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{quarterly, 4 times} \end{array}\to &4\\ t=years\to &3 \end{cases}`

Answer 2

The answer to your question would be

a.
$1,183.23