A tire manufacturer was repaying a loan of $37,500 with payments of $1000 made at the end of every month. The interest rate on the loan is 6.75% compounded semi-annually.

a. How many payments were required to settle the loan?

b. What was the outstanding balance on the loan at the end of three years?

c. What was the size of the final payment?

d. What was the total interest paid?

AppendixLO1