Edward Berry runs a printing company and he needs to buy a machine that costs $75,000. He can take a 7 year loan from ANZ Bank that has a 7.2% per annum interest compounded quarterly, and requires equal quarterly repayments, commencing 3 months after the loan is drawn, with each payment consisting of interest and principal components.

Calculate what would be Edward's quarterly repayment.
If Edward wants to pay $3,867 a quarter instead, how long will it take him to pay off the loan?

Answer rating: 100% (QA)

To calculate Edwards quarterly repayment for the loan we can use the formula for the equal periodic ... View the full answer