The problem i'm trying to figure out says that a debt of $60,000 will be repaid over 6 years by making payments of $4000 quarterly for the first 3 years, followed by a year where no payments are made, then quarterly payments again in the final two years. I have to find the size of the payments for the final two years at an annual rate of 12%.
Here's what i tried that gave me the wrong answer(s):
S = 4000 ( (1 + 0.03)^12 - 1 / 0.03)
S = 56,768.12
56,768.12 = R ( 1 - (1 + 0.03)^-12 - 1 / 0.03) * (1.03) * (1.03)^-4
If anyone can spot it from that let me know - thanks in advance