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A debt of $17200 is repaid in equal quarterly installments over ten years. Interest is 4.5% compounded quarterly. (a) What is the size of the
A debt of $17200 is repaid in equal quarterly installments over ten years. Interest is 4.5% compounded quarterly.
(a) What is the size of the quarterly payments?
(b) What will be the total cost of borrowing?
(c) What is the outstanding balance after one year?
(d) How much of the 30th payment is interest?
(e) Construct a partial amortization schedule showing details of the first three payments, the last three payments, and totals.
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