The quarterly payment will be $1,127.86
Compound interest is the interest on a loan or deposit that levied on both the first principal and the collected interest from past periods.
The amortization formula is ...
[tex]A=\dfrac{P\timesr}{(1-(1+r)^{-n}}[/tex]
where A is the payment amount, P is the principal amount, r is the interest rate per period, and n is the number of periods.
Here, we have
P=$16,231, r=0.051/4=0.01275, n=4·4=16.
So, the payment is ...
[tex]A=\dfrac{16231\times 0.01275}{1-(1.01275)^{-16}}[/tex]
[tex]A=$1127.86[/tex]
Hence the quarterly payment amount is $1,127.86.
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