Question

Tim wants to borrow $51000 from the bank and is choosing among two possible loasn. The interest rate on both loans is 2.90 percent per quarter. Loan A would require him to make 48 equal quarterly payments, with the first payment made to the bank in three months. Loan B would also require him to make equal quarterly payments to the bank. However, the quarterly payment associated with loan B would be $152 less than the quarterly payment associated with loan A and the first quarterly payment for loan B would be made to the bank later today. How many quarterly payments to the bank must be made with loan B?

$57.81

$45.21

$62.80

$53.88

all plus or minus $0.50

Answer 1

Hence the no. of payments to the bank must be made with loan B is 53.88