FlexLabs borrowed funds to purchase a new blood analysis machine by signing a loan contract requiring payments of $1630 at the end of every three months for six years.
(a) How much is the cash value of the contract if money is worth 8.1% compounded quarterly?
(b) If the first three payments are missed, how much would have to be paid after one year to bring the contract up to date?
(c) If, because of the missed payments, the con- tract has to be paid out at the end of one year, how much money is needed?
(d) How much of the total interest paid is due to the missed payments?