Question

Suppose you borrowed $25,000 at a rate of 8% and must repay it in 4 equal installments at the end of each of the next 4 years. how large would your payments be?

Answer 1

It would be 610.32 . My teacher helped me with that one

Answer 2

What is installment payment?

• An installment loan provides a borrower with a fixed amount of money that must be repaid with regularly scheduled payments.

Formula A = (p/i)*(1-(1+i)-^-n)

where A = borrowed amount,

           i  = is the annual interest rate,

           p = is the yearly payments,

           n = is number of years

Solving

Putting all given values in the formulae

     p = (A*i)/()*(1-(1+i)^-n)

   = 25000*0.08/(1-(1.08)^-4)

   = 2000/(1-0.74)

   = 7548.02

Each payment would be $7,548.02

Therefore, we may state that $7,548.02 will be paid in installments at the conclusion of each of the following 4 years.

Learn more about Installment on :

brainly.com/question/16032019

#SPJ2