Fieldsaver Technologies, a manufacturer of precision laboratory equipment, borrowed $2 million to renovate one of its testing labs. The loan was repaid in 2 years through quarterly payments that increased by $50,000 each time. At an interest rate of 12% per year, compounded quarterly, what was the size of the first quarterly payment?
What will be an ideal response?
PP = quarter; CP = quarter; need i per quarter
2,000,000 = A(P/A,3%,8) + 50,000(P/G,3%,8)
2,000,000 = A(7.0197) + 50,000(23.4806)
A = $117,665
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