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jasenka [17]
3 years ago
15

A group of private investors purchased a condominium complex for $2 million. They made an initial down payment of 10% and obtain

ed financing for the balance. If the loan is to be amortized over 15 years at an interest rate of 8.1%/year compounded quarterly, find the required quarterly payment.
Business
1 answer:
Zolol [24]3 years ago
8 0

Answer:

The required quarterly payment is $52,096

Explanation:

According to the given data we have the following:

Principal=$2,000,000×0.90=$1,800,000

I=8.1%/4=2.025%

N=15×4=60

Therefore, in order to calculate the required quarterly payment we would have to use the following formula:

quarterly payment=<u>$1,800,000</u><u>×2.025%</u>

                                 1-(1+2.025%)∧-60

                              =$52,096

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