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A debt of $14,000 with interest at 8.3%p.a compounding quarterly is to be repaid with 9 equal end-of-quarter payments. How much interest is in the

A debt of $14,000 with interest at 8.3%p.a compounding quarterly is to be repaid with 9 equal end-of-quarter payments.

How much interest is in the final instalment?

( use excel: You can either:

-      First calculate the loan outstanding at the beginning of the last quarter. The interest can then be calculated as if you were setting up a loan repayment schedule for the final quarter.

-      Use IPMT function)

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