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Hillier Hillier
wrote...
Posts: 550
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6 years ago
A contract valued at 60 000.00 requires payments of $3000.00 at the beginning of each quarter. If interest is 6% compounded quarterly, calculate the term of the contract.
Textbook 
Contemporary Business Mathematics with Canadian Applications

Contemporary Business Mathematics with Canadian Applications


Edition: 11th
Authors:
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wrote...
6 years ago
PMT = 3000.00; PV = 60 000; i =   = 0.015; I/Y = 6; P/Y = C/Y = 4
60000 = 3000(1.015)
0.295566502 = 1 - 
-n ln 1.015 = ln 0.704433498
-n(0.014888612) = -0.350361349
n = 23.53216923 quarters ÷ 4 = 5.88 ≈6 years

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