Question: 3 A debt of $42 500.00 is repaid by payments of $4850.00 made at the end of each year. Interest is 7% compounded semi-annually.

3 A debt of $42 500.00 is repaid by payments of $4850.00

3 A debt of $42 500.00 is repaid by payments of $4850.00 made at the end of each year. Interest is 7% compounded semi-annually. a) How many payments are needed to repay the debt? 3) b) What is the cost of the debt for the first three years? c) What is the principal repaid in the 3rd year? d) Construct an amortization schedule showing details of the first three payments, the last three payments, and totals.

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