Question
11) A debt of $10,000 with interest at 8% compounded quarterly is to be repaid by equal payments at the end of every six months
11) A debt of $10,000 with interest at 8% compounded quarterly is to be repaid by equal payments at the end of every six months for two years.
a) Calculate the size of the semi-annual payments.
b) Construct an amortization table for the complete 2 years with dollar amounts to two decimal places i.e. include the pennies. Round your semi-annual payment to the next higher dollar. If you did not get an answer to part a), assume a debt of 20,000, a rate of 10% and a semi-annual payments of $5,650 for 2 years.
c) Calculate the outstanding balance after three payments using formulas.
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