Homework Answers
Information provided:
Future value= $90,000
Time= 7 years*4= 28 quarters
Interest rate= 3%/4= 0.75% per quarter
The amount of quarterly payment is calculated by entering the below in a financial calculator:
FV= 90,000
N= 28
I/Y= 0.75
Press the CPT key and PMT to compute the amount of quarterly payment.
The value obtained is 2,900.58.
Therefore, the size of the quarterly payment is $2,900.58.
In case of any query, kindly comment on the solution.
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