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A $600,000 loan needs to be paid off in 10 years. What quarterly payment will be needed if the interest rate is
3.5%?

Respuesta :

ogorwyne

The quarterly payment that would have to be made would be 20250 dollars.

How to solve for the quarterly rate

We have the loan amount = 600000

The interest rate r = 0.05

We have to calculate the rate of interest.

= 600000 *0.035 * 10/100

= 210000

This customer has to pay 210000 in 10 years.

600000 + 210000 = 810000

yearly the person would have to pay

810000 / 10

= 81000

Then quarterly the payment that would be made would be

81000/4

= 20250 dollars

Read more on interest rate here: https://brainly.com/question/20690803

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anthougo

The quarterly payment needed for the repayment of a loan of $600,000 for 10 years at 3.5% interest is $17,842.68.

Data and Calculations:

N (# of periods) = 40 quarters (4 x 10 years)

I/Y (Interest per year) = 3.5%

PV (Present Value) = $600,000

FV (Future Value) = $0

Results:

PMT = $17,842.68

Sum of all periodic payments = $713,707.20 ($17,842.68 x 40)

Total Interest = $113,707.20 ($713,707.20 - $600,000)

Thus, the quarterly payment needed for the repayment of a loan of $600,000 for 10 years at 3.5% interest is $17,842.68.

Learn more about periodic payments at https://brainly.com/question/24244579