Amount of the periodic payments needed to pay off


Problem: Determine the amount of the periodic payments needed to pay off the following purchases. Payments are made at the end of the period.

1. Purchase of a waterbed for $1,205. Monthly payments are to be made for one year with interest at 24% per annum, compounded monthly.

2. Purchase of a motor boat for $26,565. Quarterly payments are to be made for four year with interest at 8% per annum, compounded quarterly.

3. Purchase of a condominium for $65,500. Semiannual payments are to be made for 10 years with interest at 10% per annum, compounded semiannually.

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Finance Basics: Amount of the periodic payments needed to pay off
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