Present value with periodic rates.

SamHinds, a localdentist, is going to remodel the dental reception area and add two new workstations. He has contactedA-Dec, and the new equipment and cabinetry will cost $18,000. The purchase will be financed with an interest rate of 7.5% loan over 6 years. What will Sam have to pay for this equipment if the loan calls for semiannual payments (2 peryear) and monthly payments (12 peryear)? Compare the annual cash outflows of the two payments. Why does the monthly payment plan have less total cash outflow eachyear?