A local business received a $45,000 loan at 4.00% compounded semi-annually. The business settled the loan with monthly payments of $875.

a. How many payments are required to settle the loan?

Round up to the nearest whole payment.

57

56

55

58

b. What was the interest portion of payment 19?

$104.31

$101.03

$108.16

$95.67

c. What was the size of the final payment?

$400.50

$407.97

$404.87

$395.79