Question $1$

A mining company plans to buy a loader costing $$3\mathrm{.}9$ million dollars

by obtaining a loan from an international investment company. The

loan will be repaid in $20$ equal quarterly installments. However, due

to a special business agreement with the agency, the first payment

will not be required until the third year after the loan date $($i$.$e$.$ the

loan is taken in year zero and the first payment is realized in the

$9$ th quarter$).$ The loan will still accrue interest during the grace

period.

If the nominal interest rate is $5\%$ compounded annually, what is the

cost of each quarterly payment? Express your answer as a positive

value.