Question

Determine the payment to amortize the debt. (Round your answer to the nearest cent.) Quarterly payments on $19,500 at 3.9% for 6 years.

Answer 1

Answer:

$925.20

Step-by-step explanation:

Loan Amount, P = $19,500

Rate of interest, r = 3.9%

Time, t = 6 years

Payment mode, n = Quarterly (4)

payment to amortize, EMI = ?

Formula: $EMI=\dfrac{P\cdot \frac{r}{n}}{1-(1+\frac{r}{n})^{-n\cdot t}}$

where,

n = 4 , Rate of interest , r = 0.039

Put the values into formula

$EMI=\dfrac{19500\cdot \frac{0.039}{4}}{1-(1+\frac{0.039}{4})^{-4\cdot 6}}$

$EMI=915.20$

Hence, The payment to amortize the debt is $915.20