Answer:
The price of the house is $ 853,735.05.
Step-by-step explanation:
Since Mr. Arju wishes to purchase a house, and to buy the house he needs to make a down payment of $ 300,000 and also pay $ 15,000 every quarter for the next 8 years, if the interest charge is 9% per year compounded quarterly, to determine what is the price of the house, the following calculation must be performed:
300,000 + (15,000 x 12 x 8) = X
300,000 + (180,000 x 8) = X
300,000 + 1,440,000 = X
1,740,000 = X
X x (1 + 0.09 / 4) ^ 8x4 = 1,740,000
X x (1 + 0.0225) ^ 32 = 1,740,000
X x 1.0225 ^ 32 = 1,740,000
X x 2.0381030257737 = 1,740,000
X = 1,740,000 / 2.03810
X = 853,735.05
Therefore, the price of the house is $ 853,735.05.
