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A student just graduated from State University with a bachelor's degree in history. During four years at the university, $11,750 in student loans were accumulated. The student asks for your help in determining the amount of the quarterly loan payment. The loan must be paid back in five years and that the annual interest rate is 8%. Payments begin in three months. Required: Determine the quarterly loan payment. Note: Use tables, Excel, or a financial calculator. Round your final answers to nearest whole dollar amount. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Table or calculator function: Present value: FVA of $1 $ 11,750 n = 20 ¡ = 2% Quarterly payment: $ 719

A student just graduated from State University with a bachelor's degree in history. During four years at the university, $11,750 in student loans were accumulated. The student asks for your help in determining the amount of the quarterly loan payment. The loan must be paid back in five years and that the annual interest rate is 8%. Payments begin in three months. Required: Determine the quarterly loan payment. Note: Use tables, Excel, or a financial calculator. Round your final answers to nearest whole dollar amount. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Table or calculator function: Present value: FVA of $1 $ 11,750 n = 20 ¡ = 2% Quarterly payment: $ 719

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A student just graduated from State University with a bachelor's degree in history. During four years at the university, $11,750 in student loans were accumulated. The student asks for your help in determining the amount of the quarterly loan payment. The loan must be paid back in five years and that the annual interest rate is 8%. Payments begin in three months. Required: Determine the quarterly loan payment. Note: Use tables, Excel, or a financial calculator. Round your final answers to nearest whole dollar amount. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Table or calculator function: Present value: FVA of $1 $ 11,750 n = 20 ¡ = 2% Quarterly payment: $ 719
Transcribed Image Text:A student just graduated from State University with a bachelor's degree in history. During four years at the university, $11,750 in student loans were accumulated. The student asks for your help in determining the amount of the quarterly loan payment. The loan must be paid back in five years and that the annual interest rate is 8%. Payments begin in three months. Required: Determine the quarterly loan payment. Note: Use tables, Excel, or a financial calculator. Round your final answers to nearest whole dollar amount. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Table or calculator function: Present value: FVA of $1 $ 11,750 n = 20 ¡ = 2% Quarterly payment: $ 719
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