In: Advanced Math
The interest rate on a $100,000 loan is 7.5% compounded quarterly. What quarterly payments will reduce the balance to $75,000 after five years? (Do not round intermediate calculations and round your final answer to 2 decimal places.) 

first we need to find the loan term t
here we have
L=loan amount = 100000
r=7.5% = 0.075
n=4 for quarterly payment
t=?
PMT=?
.....................(1)
.
after 5 years, unpaid balance is L=75000
so remaining time is
L=75000
r=7.5% = 0.075
n=4 for quarterly payment
t=?
PMT=?
put the value of PMT from equation 1
....................loan term
.
now put the value of t in equation 1
..................quarterly payment