Question
A loan of $39999.85 is to be repaid by payments at the end of each quarter for eight years. Each payment is 2% higher than
A loan of $39999.85 is to be repaid by payments at the end of each quarter for eight years. Each payment is 2% higher than its predecessor. The loan is made at the nominal rate of discount of 4% convertable quarterly.Find the balance just after the 20th payment, the amount of interest in the twentieth payment, and the amount of principal in the twentieth payment.
I am getting answers different than the book.
For interest I get $214.84 but the book says it should be $$217.23.
For the principal I get $1357.40 and it should be $1357.73.
And for the balance after the 20th payment, I get $20,126.16 and it should be $20,147.74.
I know they are not that far off but I want to see what I am doing wrong. here. Thank you!
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