Asked by The Gibson Family on May 09, 2024
Verified
A business borrows $50,000 for expansion, and is repaying the debt by making quarterly payments of $1700 at 8.5% compounded quarterly. Calculate the balance after four years. Calculate the final payment.
Compounded Quarterly
A compound interest calculation where interest is added to the principal every three months.
Quarterly Payments
Payments that are made four times a year at three-month intervals.
Final Payment
The last installment paid to settle a debt, which may include principal and interest.
- Compute the remaining principal amount on a mortgage or loan upon completion of the term.
- Determine monetary responsibilities for diverse amortization circumstances of loans.
Verified Answer
MN
Learning Objectives
- Compute the remaining principal amount on a mortgage or loan upon completion of the term.
- Determine monetary responsibilities for diverse amortization circumstances of loans.
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