Question
Mary is planning to repay a debt of 75,000 with a quarterly payment $4,000 for the next 23 quarters and a final payment of X
Mary is planning to repay a debt of 75,000 with a quarterly payment $4,000 for the next 23 quarters and a final payment of "X" dollars at the end of 24-th quarter. If the interest rate is 12% per year, compounded quarterly, how much will be Mary's final payment?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
To calculate Marys final payment we can use the formula for the future value of an ordinary annuity ...
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A Survey of Mathematics with Applications
Authors: Allen R. Angel, Christine D. Abbott, Dennis Runde
10th edition
134112105, 134112342, 9780134112343, 9780134112268, 134112261, 978-0134112107
