Determine the emi of the loan


Assume you have decided to start saving money to buy a motorcycle for your loving spouse's 40th birthday, which is 5 years away. You determine the amount you will have to pay at that time will be 6,000 dollars.  The savings account you established for the gift offers 16 percent per annum interest compounded quarterly.

How much will you have to deposit every year [at year end] to have your 6,000 dollar if your 1st deposit is  made one year from today and the final deposit is made on the day you buy the motorcycle?

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Finance Basics: Determine the emi of the loan
Reference No:- TGS018607

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