Aiden and Abbey received a small business loan of $81,500 at 9% compounded semi-annually. They received the loan for two years and had to make payments at the end of every six months to settle the loan.

a. What was the size of the semi-annual payments?

b. Construct an amortization schedule for the loan.

c. What was the total amount paid to amortize the loan?

d. What was the cost of financing (total interest paid)?

AppendixLO1