Question

zodwa needs R450550.00 to buy a house, the bank approved her loan for the full amount at an interest rate of 25% per year, compounded quarterly, the loan must be paid off in ten years time. determine the size of zodwas quarterly payments?​

Answer 1

I'll setup the problem and leave the computation to you

Explanation:

The equation to calculate fixed payments

`P = \frac{r(PV)}{1- {(1 + r)}^( - n) }`

P= payments

r = interest rate for the period (which is a quarter )

PV = present value (or the amount borrowed)

n = number of periods

r = .25/4 (4 months = quarter of a year)

n = 4*10

PV = R450550.00

if you have questions, put them in the comment