I have been stuck on this one for hours ... not too great at math can someone help. Thanks.
Isaac borrowed $\$4000$ at $11.5\%$ compounded quarterly $5.5$ years ago.
One year ago he made a payment of $\$1500$. What amount will extinguish the loan today?
I've tried a bunch of different approaches, none were right.
From what I understand we should calculate the FV for $4.5$ years when $PV=\$4000$ then subtract $\$1500$ from answer and calculate FV for one more year.
But still no luck..