A loan of $25,000 is to be paid back with semi-annual payments over 10 years (first payment due in 6- months). For both types of loan, set up an amortization table and graph the resulting outstanding balances (on separate graphs, using a column graph). Make sure your axis goes from 0 to 20.

(a) The first type of loan has an interest rate of i (2) = 9%. The first payment is R (which you have to calculate) and each succeeding payment increases by 12%. (6 marks)

(b) The second type of loan has an interest rate of i (2) = 6%. The first payment is $P (which you have to calculate) and each succeeding payment increases by $150.23. You will probably need to make a slight adjustment to the final payment to get a 0 final balance. (5 marks