Question 1194023
a key requirement is to get the interest rate per month.
8.5% per year comounded quarterly = 8.5 divided by 4 = 2.125% per quarter.
the growth factor per quarter is that divided by 100 and added to 1 to get 1.02125 per quarter.
the growth factor per month is that raised to the 1/3 power to get 1.02125 ^ (1/3) = 1.007033744.
subtract 1 from that and multiply it by 100 to .7033744% per month.
use a financial calculator to find the future value of that for 3.5 years.
inputs are:
present value = 0
number of months = 3.5 years * 12 = 42.
interest rate per month = .7033744%
payment amount = -100,000 at the end of each month
solve for future value to get future value = 4,866,513.568.
the total payments are 42 * 100,000 = 4,200,000
the total interest is 4,866,513.568 minus 4,200,000 = 666,513.568.
the average monthly interest is 666,513.568 / 42 = 15,869.37067.
that's what i get.
let me know if you have any questions or concerns.
theo