The required payment on an eight-year loan (bearing interest of 8% compounded quarterly) is $385 at the

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The required payment on an eight-year loan (bearing interest of 8% compounded quarterly) is $385 at the end of every calendar quarter.

a. What was the original principal amount of the loan?

b. What is the balance owed on the loan just after the 10th payment?

c. The original lender (the person who is receiving these loan payments) decides to sell the loan contract immediately after the 20th payment. What is the selling price if the negotiated rate of return to the buyer is 10% compounded quarterly?

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Fundamentals Of Business Mathematics In Canada

ISBN: 9781259370151

3rd Edition

Authors: F. Ernest Jerome, Jackie Shemko

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Question Posted: Oct 21, 2020 05:04 AM

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The required payment on an eight-year loan (bearing interest of 8% compounded quarterly) is $385 at the

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a Original loan Present value of all payments b Balance Present val...View the full answer

Fundamentals Of Business Mathematics In Canada

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