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How much will need to be invested at the beginning of each quarter at 4.7% compounded...

How much will need to be invested at the beginning of each quarter at 4.7% compounded quarterly, to pay off a debt of $37,000.00 in 8 years?

The quarterly payments are $__________. (Round to 2 decimal places.)

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Homework Answers

Answer #1

Present Value =

where r = 4.7% / 4 = 1.175%

n = 8 years * 4 = 32 Quarters

37000 =

37000 = Periodic Cash Flow * 26.8558135716

Periodic cash Flow = 37000 / 26.8558135716

Periodic cash Flow = $1377.73

Quarterly Payment will be $ 1377.73

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