Howard and Marge bought a business for $91,500. They borrowed the money to buy the business at 6.8% compounded semi-annually and are to repay the debt by making quarterly payments of $3,645. Payments are made at the end of each quarter.

How many payments are required to repay the loan?

What is the term of the loan in years and months?

Prepare a complete amortization schedule for the loan. Make sure your values are rounded (not just cut off) to the nearest cent. Express totals at the bottom of each column as currency.

What is the principle reduction in the 6^th year?

What is the total cost of financing the debt (total interest expense)?

If Howard and Marge make a lump sum payment of $14,000 at the end of the fourth year in addition to the regular quarterly payment, by how much is the amortization period shortened? Express your answer in years and months. Create a new amortizations schedule are part of your answer showing the impact of the $14,000 payment at the end of the fourth year in the schedule.