An $800 loan is amortized by equal quarterly payments over two years.If interest is at the rate of 16% compounded quarterly,then the quarterly payment is
A) $86.82.
B) $104.16.
C) $118.82.
D) $124.36.
E) $132.14.

Question

Quizplus · Accepted Answer

The quarterly interest rate is 4% (16% annually compounded quarterly). The loan is amortized over 8 quarters (2 years). Using the formula for the amortization of a loan, the quarterly payment can be calculated as $118.82.

An $800 Loan Is Amortized by Equal Quarterly Payments Over