Asked by Christina Silverio on Apr 27, 2024
Verified
A $35,000 loan bearing interest at 10% compounded quarterly was repaid, after a period of deferral, by quarterly payments of $1573.83 over 12 years. What was the time interval between the date of the loan and the first payment?
Compounded Quarterly
Compounded Quarterly is a method of calculating interest where the interest earned over a quarter is added to the principal, and the subsequent interest calculation will include the previously earned interest.
Deferral Period
A span of time during which payments, especially loan or insurance premiums, are postponed.
- Comprehend the principle of loan amortization and determine the timeline and installments for amortized loans.
- Appreciate the influence of compounding intervals on the expansion of investment values.
Verified Answer
BT
Learning Objectives
- Comprehend the principle of loan amortization and determine the timeline and installments for amortized loans.
- Appreciate the influence of compounding intervals on the expansion of investment values.