Ben takes out a loan for $14000, which he will pay back in equal monthly installments (at end of each month). The interest rate on the loan is 6.75% compounded semi-annually, and the loan matures in 4 years.

a) What is the effective monthly rate?

b) How much are his monthly payments?

c) Write down the first 4 rows of the amortization schedule for this loan.

d) How much of his 14 payment is interest, and how much is principal reduction?

e) What number is the first payment where the amount of interest is less than the principal reduction?