Question

Haley initially borrowed $5,600 from Scotiobank at 2.66% compounded quarterly. After 3 years she repaid $1,624, then 7 years after the $5,600 was initially borrowed she repaid $2,072. If she pays off the debt 11 years after the $5,600 was initially borrowed, how much should her final payment be to clear the debt completely? Round all answers to two decimal places if necessary.

Answer 1

Initial balance	$                  5,600
Interest	2.66%
Compounding	Quarterly
Repayment after 3 years	$                  1,624
Balance after 3 years	(5600*(1+2.66%/4)^(3*4))-1624)
Balance after 3 years	$             4,439.59
Next payment in next 4 years	2072
Balance after 7 years	(4439.59*(1+2.66%/4)^(4*4))-2072)
Balance after 7 years	$             2,864.27
Next payment in next 4 years
Balance after 11 years	(2864.27*(1+2.66%/4)^(4*4))
Balance after 11 years	$             3,184.71
So final payment will be $ 3,184.71