Bella purchased a machine for $350,000. She paid 30% of the value as a down payment and received a loan for the balance at 5.75% compounded semi-annually. She had to make payments of $8081.40 at the end of every three months to settle the loan.

a. What was the amortization period?

b. Construct an amortization schedule for the loan.

c. What was the cost of financing?

AppendixLO1