Question
A debt of $13,000 with interest at 8.0%p.a compounding quarterly is to be repaid with 10 equal end-of-quarter payments. How much interest is in the
A debt of $13,000 with interest at 8.0%p.a compounding quarterly is to be repaid with 10 equal end-of-quarter payments.
How much interest is in the final instalment?
(Use excel: You can either:
-First calculate the loan outstanding at the beginning of the last quarter. The interest can then be calculated as if you were setting up a loan repayment schedule for the final quarter.
-Use IPMT function)
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Practical Financial Management
Authors: William R. Lasher
8th edition
1305637542, 978-1305887237, 1305887239, 978-1305637542
