Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A loan of $13,000 with interest at 10% compounded semi-annually is repaid by payments of $942.00 made at the end of every three months. (a)

image text in transcribed

A loan of $13,000 with interest at 10% compounded semi-annually is repaid by payments of $942.00 made at the end of every three months. (a) How many payments will be required to amortize the loan? (b) If the loan is repaid in full in 2 years, what is the payout figure? (c) If paid out, what is the total cost of the loan? (a) The number of payments required to amortize the loan is I (Round up to the nearest whole number.) (b) The payout figure outstanding principal after the regular payments) is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) (c) The total cost of the loan is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cornerstones Of Financial Accounting

Authors: Jay Rich, Jeff Jones, Maryanne Mowen, Don Hansen

2nd Edition

0538473452, 9780538473453

More Books

Students also viewed these Finance questions

Question

How can we confi rm both ourselves and others?

Answered: 1 week ago