A $28,000 loan at 8% compounded quarterly is to be repaid by equal quarterly payments over a seven-year term.
a) What will be the principal component of the sixth payment?
b) What will be the interest portion of the 22^nd payment?
c) How much will the loan's balance be reduced by Payments 10 to 15 inclusive?
d) How much interest will be paid in the second year?

Question

Quizplus · Accepted Answer

The Answer of A $28,000 loan at 8% compounded quarterly is to be repaid by equal quarterly payments over a seven-year term. a) What will be the principal component of the sixth payment? b) What will be the interest portion of the 22^nd payment? c) How much will the loan's balance be reduced by Payments 10 to 15 inclusive? d) How much interest will be paid in the second year?

A $28,000 Loan at 8% Compounded Quarterly Is to Be