2- Reference the figures from the compound interest question in this assignment. If all payments were equal over the time span of the loan, what is the quarterly payment? (How many quarters occur over the time span of the loan? There are four quarters in a year.) Include dcollars, cents, and commas. Do not includ a dollar sign. [1]

With Compound Interest, you work out the interest for the first period, add it to the total, and then calculate the interest for the next period, and so on. For this question, please include dollars and cents, even if it is 1,234,567.00. Here are the calculations for a 5 Year Loan at 10%: Year Loan at Start Interest Loan at End 1 1,000.00 ($1,000.00 x 10% =) 100.00 1,100.00 2 1,100.00 ($1,100.00 x 10% =) 110.00 1,210.00 3 1,210.00 ($1,210.00 x 10%= ) 121.00 1,331.00 4 1,331.00 ($1,331.00 x 10% = ) 133.10 1.464.10 5 1,464.10 ($1,464.10 x 10% =) 146.41 1.610.51 As you can see, it is simple to calculate if you take one step at a time. 1. Calculate the Interest (= "Loan at Start" x Interest Rate) 2. Add the Interest to the "Loan at Start" to get the "Loan at End" of the year 3. The "Loan at End" of the year is the "Loan at Start" of the next year Calculate the compound interest for a 3-year loan at 21%. Loan amount is 467,000.00. Year Loan at Start Interest Loan at end 1 2 3