SOLUTION: A mortgage of 100,000 for a set of appliances is to be amortized with equal payments every quarter for one year at 10%. How much will be his quarterly payment?

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Question 1176090: A mortgage of 100,000 for a set of appliances is to be amortized with equal payments every quarter for one year at 10%. How much will be his quarterly payment?
Answer by Theo(13342) (Show Source):
You can put this solution on YOUR website!
uisng the financial calculator at https://arachnoid.com/finance/index.html, you would make the following inputs.

pv = 100,000
fv = 0
np = 1 year * 4 quarters per year = 4
ir = 10% per year / 4 quarters per year = 10/5 = 2.5
payment is made at the end of each qusarter.

click on pmt and the calculator tells you that the pmt = 26581.79.

if pv is positive, then pmt will be negative.
if pv is negative, then pmt will be positive.
you'll get the same answer either way.
positive and negative are cash flow values.
you are receiving 100,000 so pv is positive.
you are making quasrterly payments, so payment is negative.

here are the results from using that calculator.