Question

Brian took eight years to pay off his $71,900 loan. The loan had an interest rate of 8. 16%, compounded quarterly. If Brian paid quarterly and made the same payment every time, how much was each payment that he made? a. $2,342. 66 b. $3,081. 54 c. $1,022. 28 d. $1,466. 76.

Answer 1

The amount of payment at the end of each period for eight years will be $3,081.54

Given,

Principal Amount or the Present Value =$71,900

Rate of interest =8.16%, but the rate per period that is for the quarterly payment the rate of interest will be: 2.04%

Compounding period quarterly for eight years.

So, the periods will be:

$\begin{aligned}Period&=4\times8\\&=32\end{aligned}$

From the given data we need to determine PMT, that is per month payment that will be equal for all the payments made by Brian.

The computation of the per month amount is shown in the image attached below.

Therefore, option b. $3,081.54 is the payment same for each payment.

To know more about equal payments and present value, refer to the link:

https://brainly.com/question/24176065