Gary borrows 150,000 with interest at 15% compounded quarterly. How many 9,500 quarterly payments are required?...

Gary borrows 150,000 with interest at 15% compounded quarterly. How many 9,500 quarterly payments are required?

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Expert Solution

The number of quarterly payments required can be calculated with the help of NPER function of Excel

Inputs required"

PV = 150000

FV = 0

PMT = 9500

Rate = 15%/4 = 3.75%

The NPER function of Excel is:

=NPER(3.75%,-9500,150000,0,0)

= 24.36 payments

Hence it would take 24.36 quarterly payments

Amanda K answered 2 years ago

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