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Sanam has bought a property for $120,000 down payment and quarterly payments of $2100 at the...

Sanam has bought a property for $120,000 down payment and quarterly payments of $2100 at the end of every quarter for 15 years. Find the purchase price of her property if interest rate is 4% p.a. compounding quarterly.

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Expert Solution

Rate per quarter =4%/4 =1%
Number of quarters =15*4 =60
Purchase price of the property =Downpayment+Quarterly Payment*((1-(1+r)^-n)/r)
=120000+2100*((1-(1+1%)^-60)/1%) =214405.58

jeff jeffy answered 2 years ago
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