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?

Answer rating: 100% (QA)

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 the full answer