Money borrowed today is to be paid in 6 equal payments at the end of 6 quarters. If the interest is 12% Compounded Quarterly. How much was initially borrowed if quarterly payment is $2000
Answer is $10834.38
I've tried the Compound Interest Formula:
A = P(1+r/n)^nt 2000 = P(1+0.12/4)^(4*(6/4))
I am Getting P = 1674
What am I doing wrong? Any hint?