Nominal interest rate convertible quarterly

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Mike takes out a 10 year loan of 50,000 with a 15% nominal interest rate convertible quarterly. Mike makes level payments of Y at the end of each quarter assuming he wil take the entire term of 10 years to pay off the loan. However, with the 20th payment, Mike adds X, just to that payment, in order to pay off the loan exactly and early with the 30th payment of Y. Assume all other payments are Y. Calculate X.

A 2430 B 5350 C 10110 D 13830 E 19980

Reference no: EM13949510

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