Finite Math

A group of private investors purchased a condominium complex for $2 million. They made an initial down payment of 15% and obtained financing for the balance. The loan is to be amortized over 13 years at an interest rate of 15% per year compounded quarterly. (Round your answers to the nearest cent.)

What is the required quarterly payment?
$
Incorrect: Your answer is incorrect.


How much total interest will be paid on the loan?
$
Incorrect: Your answer is incorrect.

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  1. amount to be mortgaged = 2000000(.85) = .... (A)
    i = .15/4 = .0375
    n = 13(4) = 52

    2000000(.85) = P(1 - 1.0375^-52)/.0375
    solve for P, I get 74,774.89, what did you get ?

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  2. So what was your final answer?

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