Andy needs a loan that he will not have to pay back for 3 years. The interest rate for the
loan is 7.5% compounded quarterly. On the maturity date, wants Andy to make a single
payment of no more than $12000. What is the most Andy can borrow?
PV ==12,000 / [1 + 0.075/4]^(3*4)
PV ==12,000 / [1 + 0.01875]^12
PV ==12,000 / 1.2497163766
PV ==$9,602.18 - maximum amount that Andy can borrow.
thank u so much!
+18 
