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Company AX borrowed amount of $11.2M
Effective rate of interest is 4.79%
Period 10 years
payment is quarterly.How we will calculate each installment amount?
I assume that the quarterly payment is to be of an equal amount in order to pay off the principal and the interest.
In which case, there are 40 payments, and the payment each time will be $11.2M divided by the annuity factor for 40 periods at 4.79%.
Given that neither 4.79% nor 40 periods are covered by the discount tables, you will need to work out the annuity factor yourself using the formula given on the tables.
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