Explore BrainMass

Explore BrainMass

    Time Value of Money- Quarterly payments

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    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.

    © BrainMass Inc. brainmass.com March 4, 2021, 5:39 pm ad1c9bdddf
    https://brainmass.com/business/finance/time-value-of-money-quarterly-payments-4208

    Solution Preview

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

    Solution Summary

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

    $2.49

    ADVERTISEMENT