Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please round the number correctly. Thank you A $25,000.00 loan for a home improvement is to be repaid by equal semi-annual payments over 5 years

please round the number correctly. Thank you

A $25,000.00 loan for a home improvement is to be repaid by equal semi-annual payments over 5 years at 7.3% compounded semi-annually.

a) Calculate the semi-annual payment that pay off the loan in 5 years ( rounded up to the cent) .

b) What amount of principal will be repaid with the 4th payment?

c) What will be the interest portion of the 6th payment?

d) How much interest will be paid in the third year?

e) Calculate the final, concluding payment.

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

Investments An Introduction

Authors: Herbert B Mayo

11th Edition

1133936520, 9781133936527

More Books

Students also viewed these Finance questions

Question

How do you get the turtles X and Y coordinates?

Answered: 1 week ago

Question

Review the determinants of direct financial compensation.

Answered: 1 week ago