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You borrow from a bank 50,000 at a 4% quoted annual interest rate compounded quarterly. You agree to repay the loan in fixed quarterly payments

You borrow from a bank 50,000 at a 4% quoted annual interest rate compounded quarterly. You agree to repay the loan in fixed quarterly payments during 5 years.

a) Calculate the quarterly payment assuming that payments are made at the end of the quarter.

b) What will be the balance on the loan after 3 years (i.e. the outstanding credit balance)?

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