Donna and Keith want to sell their business. They have received two offers. If they accept Offer A, they will receive $61,000 immediately and $20,000 in three years. If they accept Offer B, they will receive $37,000 now and $3,000 at the end of every six months for 5 years with the first payment received 6 months from now. If interest is 6.67% annually, which offer is preferable for Donna and Keith?

A debt of $10,000 with interest at 8% compounded quarterly is to be repaid by equal payments at the end of every six months for two years.

a) Calculate the size of the semi-annual payments.

b) Construct an amortization table for the complete 2 years with dollar amounts to two decimal places i.e. include the pennies. Round your semi-annual payment to the next higher dollar. If you did not get an answer to part a), assume a debt of 20,000, a rate of 10% and a semi-annual payments of $5,650 for 2 years.