Marla borrows $4,500 at 12 percent annually compounded interest to be repaid in four equal annual installments.The actual end of year payment is: (Round to the nearest whole dollar)
A) $942
B) $1,125
C) $1,482
D) $2,641

Question

Quizplus · Accepted Answer

PV = PMT × 11ea7fdb_fc1a_5178_a768_a14bde6bf817_TB2902_11 PMT = PV / 11ea7fdb_fc1a_5179_a768_5daa1212a6d4_TB2902_11 PMT = 4,500 / 11ea7fdb_fc1a_517a_a768_e77350e0bb41_TB2902_11 = $1,481.55
Using a financial calculator:
N = 4, I/Y = 12, PV = -4,500, FV = 0, cpt PMT = $1,481.55

Marla Borrows $4,500 at 12 Percent Annually Compounded Interest to Be