Ming received a $15,000 loan at 7.75% compounded semi-annually that was to be repaid by payments of $550 at the end of every month. Upon completing the first 7 payments, he lost his job. However, his father helped him pay the 8th to the 12th payments.

a. What was the reduction in the loan amount during the 8th to the 12th payments, both inclusive?

b. What was the interest amount paid during the 8th to the 12th payments, both inclusive?

AppendixLO1