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Q A Company decided to borrow 15000000 from the bank to purchase a new Air jet for it The loan will be paid in equal quarterly payments over 15 years starting at the end of the 1st year A The

Q) A Company decided to borrow $ 15,000,000 from the bank to purchase a new Air jet for it. The loan will be paid in equal quarterly payments over 15 years starting at the end of the 1st year (A) .The value of the installment will be doubled for the last five years (2A) .If the interest rate is 8% per quarter compounded quarterly, Find:

a) The value of the equal payments (A)

b) If the company decided to pay off the remaining balance after the 35th payment, what will be their remaining balance then?

Note: I have solved part (a) and I got A = 43,1519.4874 $ per quarter. but for part b I can't solve it please help me. Thanks in advance.

 

Aug 23 2020 View more View Less

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