Asked by Anonymous

Find the payment necessary to amortize a 4% loan of $2100 compounded quarterly with 13 quarterly payments. Find the payment amount.
Answered by Reiny
quarterly rate = i = .04/4 = .01

Pay( 1 - 1.01^-13)/.01) = 2100
12.13374 (pay) = 2100
pay = $173.07