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Time Value of Money- Quarterly payments

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Problem: Buying a car.

A student borrowed $4000 from a credit union toward purchasing a car. The interest rate on such a loan is 14% compounded quarterly, with payments due every quarter. The student wants to pay off the loan in 4 years. Find the quarterly payment.

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Solution Summary

The solution calculates the quarterly payment (annuity) for a car loan.

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Payment Q Quartely
No of years= 4
No of Periods= 16 =4X4
Discount rate ...

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