Guy borrowed $8,000 at 7.8% compounded monthly and agreed to repay the loan in equal quarterly payments over four years.
a) How much of the fifth payment will be interest?
b) What will be the principal component of the eleventh payment?
c) How much interest will be paid by Payments 5 to 12 inclusive?
d) How much will the principal be reduced in the second year?
e) What will be the final payment?

Question

Quizplus · Accepted Answer

The Answer of Guy borrowed $8,000 at 7.8% compounded monthly and agreed to repay the loan in equal quarterly payments over four years.
a) How much of the fifth payment will be interest?
b) What will be the principal component of the eleventh payment?
c) How much interest will be paid by Payments 5 to 12 inclusive?
d) How much will the principal be reduced in the second year?
e) What will be the final payment?

Guy Borrowed $8,000 at 7