A student just graduated from State University with a bachelor's degree in history. During four years at the university, $11,750 in loans were accumulated. The student asks for your help in determining the amount of the quarterly loan payment. The loan mu 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 S of $1, PVA of $1, FVAD of $1 and PVAD of $1) Table or calculator function: Present value: PV of $1 S 11,750 x
A student just graduated from State University with a bachelor's degree in history. During four years at the university, $11,750 in loans were accumulated. The student asks for your help in determining the amount of the quarterly loan payment. The loan mu 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 S of $1, PVA of $1, FVAD of $1 and PVAD of $1) Table or calculator function: Present value: PV of $1 S 11,750 x
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![Exercise 5-19 (Algo) Solving for unknown annuity amount [LO5-9]
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:
Quarterly payment:
n =
j=
PV of $1
$
$
11,750
5x
8% X
719](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0c0b8cbb-27c0-4c5a-a233-912a5b3d086e%2F99ec5268-ebd2-4eff-bafd-1e7394dd2852%2Fjsso5i2_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 5-19 (Algo) Solving for unknown annuity amount [LO5-9]
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:
Quarterly payment:
n =
j=
PV of $1
$
$
11,750
5x
8% X
719
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