Question: You borrow $ 2 , 0 0 0 fixed payment loan. What will be the fixed payment if you want to pay off the loan

You borrow $

2, 000

fixed payment loan. What will be the fixed payment if you want to pay off the loan in

4

quarterly payments? The first quarters interest rate is

5 %,

and it keeps on increasing by

25

basis points each quarter for the three remaining quarters. How much will be the interest payment made by you?

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To calculate the fixed payment for a loan with quarterly payments and increasing interest rates we can use the formula for the fixed payment of an amortizing loan Well also calculate the interest paym... View full answer

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