Davis purchased a machine with a loan of $75,000 at 8.75% compounded daily. He settled the loan by making payments of $1300 at the end of every month.

a. What was the reduction in the loan amount during the 13th to the 21st payments, both inclusive?

b. What was the interest amount paid during the 13th to the 21" payments, both inclusive?

AppendixLO1