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Q2) A loan of $50,000 is repayable by equal semi-annual payments in arrears for 20 years (40 payments). Interest is payable at annual effective interest
Q2) A loan of $50,000 is repayable by equal semi-annual payments in arrears for 20 years (40 payments). Interest is payable at annual effective interest rate of 10%.1. Calculate the interest paid in the 12th year.2. Calculate the capital repaid in the 16th payment.3. Calculate the Outstanding of the loan after year 10 (after the 20th payment).4. the total interest paid over the whole loan.5. Calculate the capital repaid between years 2 and 5.
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