techniques ments 2 Online quiz review 10 uestion 2 ot y

/ techniques ments 2 Online quiz - review ( 10 %) , uestion 2 ot yet nswered A $5672 reducible loan is to be repaid with 9 equal quarterly repayments. If interest isk 14%, find the amount of the quarterly repayments. Marked out of 0.00 Answer Flag question Tir Next page Previous page

Solution

Loan amount = 5672

Payment mode = Quarterly

Interest rate = 14% annual

Interest rate (r) = 14/4 = 3.5% quarterly

FV = P / (1+ r)^1 + P / (1+r)^2 + P / (1+r)^3 + P / (1+r)^4....................... + P / (1+r)^9

5672 = P ( 1/1.035 + 1/(1.035)^2 ........................ + 1/ (1.035)^9)

Calculate the value of P which is = 745.56