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Q 5 The iterest rate on a 5 1 4 , 5 0 0 loan is 8 . 9 % compounded semiannually. Semiannual payments will
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The iterest rate on a loan is compounded semiannually. Semiannual payments will pay off the loan in eight year.
Do not round intermediate calculations, Round the PMT and final answers to decimal places.
a Calculate the interest component of Payment
Interest
b Colculate the principal component of Payment
Principal
c Colculate the interest paid in Year
Interest paid
d How much do Payments to inclusive reduce the principal balance?
Principal reduction
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