document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1169505>Question 1169505</A>: <I><SPAN STYLE=\"word-break: break-all;\"> a firm will need 300000 at the end of 3 years to repay a loan. the firm decided that it would deposit 20000 at the start of each quarter during these 3 years into the account. the account yield 12% per annum compounded quarterly during the first year. what rate of interest should it earn during the remaining 2 years to accumulate enough amount into this account to pay the loan at the end of 3 years. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #794394 by </B><A HREF=/tutors/aboutme.mpl?userid=Theo><B>Theo(13342)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Theo><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=Theo><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=794394\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> i take my previous answer back.<BR>\n" );
document.write( "this can be done using a financial calculator such as the one found at <a  rel=nofollow HREF= \"https://arachnoid.com/finance/index.html\" target = \"_blank\">https://arachnoid.com/finance/index.html</a>\r<BR>\n" );
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document.write( "here's a display of the two steps required.\r<BR>\n" );
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document.write( "in the first step, you would make the following inputs.\r<BR>\n" );
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document.write( "present value = 0<BR>\n" );
document.write( "future value = 0<BR>\n" );
document.write( "number of periods = 1 year * 4 quarters per year = 4<BR>\n" );
document.write( "payment amount = -20,000<BR>\n" );
document.write( "interest rate % per period = 12% per year / 4 quarters per year = 3<BR>\n" );
document.write( "payment is made at the beginning of each period\r<BR>\n" );
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document.write( "you would then click on fv and the calculator tells you that the future value is 86,182.72.\r<BR>\n" );
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document.write( "in the second step, you would make the following inputs.\r<BR>\n" );
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document.write( "present value = -86,182.72<BR>\n" );
document.write( "future vlaue = 0<BR>\n" );
document.write( "number of periods = 2 years * 4 quarters per year = 8<BR>\n" );
document.write( "payment amount = -20,000<BR>\n" );
document.write( "payment at beginning of period.\r<BR>\n" );
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document.write( "you would then click on ir and the calculator tells you that the interest rate % per period is 3.450286%\r<BR>\n" );
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document.write( "if you didn't get a chance to see my previous answer using excel, that can be found at <a  rel=nofollow HREF= \"https://www.algebra.com/algebra/homework/Finance/Finance.faq.question.1169507.html\" target = \"_blank\">https://www.algebra.com/algebra/homework/Finance/Finance.faq.question.1169507.html</a>\r<BR>\n" );
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document.write( "an additional bonus is you get to see an answer by an other tutor who was quite proficient in arriving at the same answer.\r<BR>\n" );
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document.write( " </SPAN>\n" );
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