Question 1076752: find the amount of each payment if a dept of R25000 is amorised with equal quaterly payment over 6 years and money worth 7% coumpounded quaterly.
Answer by jorel1380(3719)   (Show Source):
You can put this solution on YOUR website! To calculate the amount of quarterly payments, we use the formula Payout=[Principal*(r/n)*((1+r/n)^(y*n))]/[((1+r/n)^(y*n))-1], where r is the yearly interest rate, n is the amount of compounding periods per year, and y is the total number of years of payout. So, we have:
Quarterly Payments (QP)=[25000*(.07/4)*((1+.07/4))^(6*4)]/[((1+.07/4)^(6*4)-1)]
QP=R 1284.64127 is your expected quarterly return. ☺☺☺☺
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