Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

aurentian Bank issued a loan of $107,000 at 7.91% compounded semi-annually. The oan was repaid by payments of $6,390 at the end of every quarter.

image text in transcribed

aurentian Bank issued a loan of $107,000 at 7.91% compounded semi-annually. The oan was repaid by payments of $6,390 at the end of every quarter. a. How many payments were required to pay off the loan? (Enter a whole number) b. What was the total principal repaid in the 3rd year? (Enter starting and ending periods as P1 and P2 and the total principal repaid as a positive value to the nearest cent.) P1=P2= Total principal repaid in the 3rd year =$ c. What was the size of the final payment? (Enter a positive value to the nearest cent) $

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

More Books

Students also viewed these Finance questions