Question

Determine the payment to amortized the debt quarterly payments on $16,500 at 3.6% for 6 years

Answer 1

Answer:

A = $769.83

Step-by-step explanation:

Given data:

Principle = $16,500

rate of interest = 3.6%

Number of year = 6 year

period quarterly

Payment to be amortized can be determined by using following relation

$A = P[\frac{r(1+r)^n}{(1+r)^n -1}]$

r is rate of interest per period is 3.6%\4 = 0.009

$n = 6\times 4 = 24 period$

$A = 16500[\frac{0.009(1+0.009)^{24}}{(1+0.009)^{24} -1}]$

$A =16500[\frac{0.01159134}{0.239903796}]$

A = $769.83