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 1195219: 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) About Me  (Show Source):
You can put this solution on YOUR website!
inputs to financial calculator:
present value = 30000
future value = 0
interest rate = 3% per year / 4 = .75% per quarter of a year.
number of time periods = 10 years * 4 quarters per year = 40 quarters.
payments are made at the beginning of each quarter.
output from financial calculator.
payments at the beginning of each quarter = $864.42.
here's a display of the online financial calculator at https://arachnoid.com/finance/index.html that i used.