A group of private investors purchased a condominium complex for $2 million. They made an initial down payment of 15% and obtained financing for the balance. The loan is to be amortized over 13 years at an interest rate of 15% per year compounded quarterly. (Round your answers to the nearest cent.)

Question

What is the required quarterly payment?
$
Incorrect: Your answer is incorrect.


How much total interest will be paid on the loan?
$
Incorrect: Your answer is incorrect.

Answer 1

amount to be mortgaged = 2000000(.85) = .... (A)
i = .15/4 = .0375
n = 13(4) = 52

2000000(.85) = P(1 - 1.0375^-52)/.0375
solve for P, I get 74,774.89, what did you get ?

Answer 2

So what was your final answer?