Zandile is about to purchase a car for R191810,00 on terms from a car dealer. The terms are R23235 deposit and the rest paid in equal quarterly payments of R13292,48 at the end of each quarter for four years. The interest rate is 11,5% per year, compounded quarterly. Considering the amortisation schedule, the principal repaid during the third quarter of the first year, is equal to
Answers
Answered by
0
Given:
Price of the car = Rs. 19,181,000
Deposit Amount = Rs. 23,235
Quarterly payments = Rs. 13,292,48
Rate of interest = 11.5%
To Find:
Principal repaid during the third quarter of the first year
Solution:
FV = Pv (1+ i/m)^mn
= 23235 × (1+ 11.5/4)^16
= 23235 × (1.02875)^16
= 36567.92 /16
= 2285.49
Answer: The principal repaid will be Rs. 2285.4
Similar questions