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In: Finance
You wish to buy a speed boat that costs $45,000. You will put down 10% down...
You wish to buy a speed boat that costs $45,000. You will put down 10% down payment and finance the remaining cost of the boat with a 6-year fully amortized loan at an annual rate of 12%. If you want to make equal quarterly payments with the first payment three months from now, how much will your quarterly payment be?
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Expert Solution
Quarterly payment is calculated using the PMT function:
=PMT(rate,nper,pv)
=PMT(12%/4,6*4,45000*90%)
=2391.42
Where,
rate is periodic rate,
nper is number of periods,
pv is current value of amount borrowed
jeff jeffy answered 2 years agoRelated Solutions
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