Step#1:
7500(1 + .09/4)^16 = 10,707.16 : that's the initial FV
Step#2:
10707.16 / (1 + .07/4)^n = 9380.24
Solve for n ; that'll be the number of quarters.
Let us know if you need more help.
$7500 was borrowed for a 4 year term at 9% compounded quarterly.The terms of the loan allow prepayment of the loan based on discounting the loan's maturity value at 7% compounded quarterly How long ( to the nearest day ) before the maturity date was the loan prepaid if the payout amount was $9380.24 including accrued interest ? for the puropese of determining the number of days in a partial calendar quarter, assume that a full quarter has 91 days.
FV = 9380.24
PV = 7500
n =
i = ( confused on )
n = ?
because of the 7% ccompounded quarterly and 9 % compounded quarterly both of them threw me off so i am stuck