Valley Produce received $50,000 in vendor financing at 7.8% compounded semiannually for the purchase of harvesting machinery.

Question:

Valley Produce received $50,000 in vendor financing at 7.8% compounded semiannually for the purchase of harvesting machinery. The contract requires equal annual payments for seven years to repay the debt. Construct the amortization schedule for the debt. How much interest will be paid over the seven-year term?