A company borrowes $25000 at an interest rate of a nominal 16% per year compounded quarterly. The company desires to repay the loan in 36 equal quartely payments, with the first payment starting three months from now.
(a) What should be the size of each payment?
(b) If after making payments the company decides to pay off the balance of the loan at the start of the 17th quarter, how much must the company pay?
(c) At this time what percentage of the principal has been paid?