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The owner of a small business borrowed $70,000 with an agreement to repay the loan with quarterly payments over a five year time period. If the interest rate is 12% per year compounded quarterly, his loan
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The owner of a small business borrowed $70,000 with an agreement to repay the loan with quarterly payments over a five year time period. If the interest rate is 12% per year compounded quarterly, his loan payment each quarter is nearest to

User Jooyoun
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1 Answer

2 votes

Answer:

His loan payment each quarter is nearest to $4,705.10.

Step-by-step explanation:

Using a Financial Calculator enter the following data and find PMT, the loan payment each quarter

Pv = $70,000

n = 4 × 5 = 20

r = 12%

P/yr = 4

Fv = $0

Pmt = ? - $4,705.10

Thus PMT, the loan payment each quarter will be $4,705.10.

User Tommyk
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