Question 982896: Please solve as I am not having any luck with this problem. Find the payment necessary to amortize the loan. $2,300; 10% compounded quarterly, 8 quarterly payments. Thank you very much.
Found 2 solutions by jim_thompson5910, solver91311:
Answer by jim_thompson5910(35256)   (Show Source):
Answer by solver91311(24713)  (Show Source):
You can put this solution on YOUR website!
^{nt}}{\left(1\ +\ \frac{r}{n}\right)\ -\ 1}\right\])
where  is the payment per compounding period,  is the present value of the investment (the loan amount),  is the interest rate per annum expressed as a decimal,  is the number of compounding periods per year, and  is the number of years.
For your problem:
^{4*2}}{\left(1\ +\ \frac{0.10}{4}\right)\ -\ 1}\right\])
You can do your own calculator work, or if you want the easy way out, open up an Excel (or Numbers if you are running a Mac) spreadsheet and enter:
=-PMT(0.025,8,2300)
or
=-PMT(0.025,8,2300,0,1) (if you make the payments at the beginning of the quarter)
John
My calculator said it, I believe it, that settles it
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