SOLUTION: A debtor, who receives a loan of $30, 000, agrees to deposit equal sums at the beginning of each 3 months for 10 years with a trust company, in order to pay the principal at the en
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Question 1195217: A debtor, who receives a loan of $30, 000, agrees to deposit equal sums at the beginning of each 3 months for 10 years with a trust company, in order to pay the principal at the end of 10 years. If the fund earns 3% compounded quarterly, find the periodic deposit.
Answer by Theo(13342) (Show Source): You can put this solution on YOUR website!
use the calculator at https://arachnoid.com/finance/
inputs are eveything except pmt.
output is pmt.
here are the results.
required payment is 864.42 at the beginning of each quarter.
interest rate per quarter = 3% / 4 = .75%
numt of quarters = 10 * 4 = 40.
let me know if you have any questions.
theo
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