SOLUTION: A debt of 1000 with interst at 16% compounded quaterly is to be amorized by 20 quarterly payments (all the same size) over the next 5 years. what will the size of these payments be

Question 1076877: A debt of 1000 with interst at 16% compounded quaterly is to be amorized by 20 quarterly payments (all the same size) over the next 5 years. what will the size of these payments be?
Answer by jorel1380(3719) (Show Source): You can put this solution on YOUR website!
The following formula is used to calculate the fixed monthly payment (P) required to fully amortize a loan of L dollars over a term of n months at a monthly interest rate of c. [If the quoted rate is 6%, for example, c is .06/12 or .005].
P = L[c(1 + c)^n]/[(1 + c)^n - 1]. So:
P=1000(.04(1+.04)^20)/((1+.04)^20 -1)
P=1000(0.07358175032862888443915456319312)
P=73.58175 as the value of quarterly payments. ☺☺☺☺
RELATED QUESTIONS
what is the present value of annuity of A A debt of R1000 with interest at 16% compounded (answered by jorel1380)

a man buys a house for R200000. he makes a R50000 down payments and agree to amorised the (answered by jorel1380)

A debt of $6000 due today is to be settled by two equal payments due three months from... (answered by VFBundy)

Scheduled payments of $2000 due in three months with interest at 3.1%... (answered by Theo)

Annuity problems have really been giving me a problem lately and we've been moving... (answered by stanbon)

A ₱300,000 debt is to be paid by quarterly payments of ₱22,000 at 14% compounded... (answered by Theo)

Find the payment necessary to amortize a 12% loan of $1800 compounded... (answered by Boreal,ikleyn,solver91311)

A debt of $5000 is to be amortized with 12 equal semiannual payments. If the interest... (answered by ankor@dixie-net.com)

What is the present value of a 2-year deferred annuity at 4% interest compounded... (answered by CPhill)