Guy borrowed $8,000 at 7.8% compounded monthly and agreed to make quarterly payments of $500 (except for a smaller final payment).
a) How much of the eleventh payment will be interest?
b) What will be the principal component of the sixth payment?
c) How much interest will be paid by Payments 3 to 9 inclusive?
d) How much will the principal be reduced in the third year?
e) What will be the final payment?

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The Answer of Guy borrowed $8,000 at 7.8% compounded monthly and agreed to make quarterly payments of $500 (except for a smaller final payment).
a) How much of the eleventh payment will be interest?
b) What will be the principal component of the sixth payment?
c) How much interest will be paid by Payments 3 to 9 inclusive?
d) How much will the principal be reduced in the third year?
e) What will be the final payment?

Guy Borrowed $8,000 at 7