Question

Please help me with this it's 12th grade math but I need it solved and the formula used

Answer 1

Amortization is the process of paying off debt with regular payments made over time.

Given that

`A\text{ =P x}((r)/(n)(1+(r)/(n))^(nt))/((1+(r)/(n))^(nt)-1)`

where P = $20,000

r= 5% = 0.05

n = 4 (since it is compounded quarterly)

t = 11/12 (Since it is 11 quaterly payment)

`\begin{gathered} \text{Therefore n x t = 4 x}(11)/(12)\text{ =}(11)/(3) \\ \end{gathered}`

Also,

`(r)/(n)=(0.05)/(4)=\text{ 0.0125}`

Substituting these values