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1. The interest rate charged on a loan of $85,000 is 7.75% compounded annually. If the loan is to be paid off over seven years,
 1. The interest rate charged on a loan of $85,000 is 7.75% compounded annually. If the loan is to be paid off over seven years, calculate the size of the annual payments.

 2. A $10,000 debt is repaid by payments of $800 at the end of each quarter for five years. What semiannually compounded nominal interest rate was charged on the loan?

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To calculate the size of the annual payments for the loan one can use the formula for the a...Get Instant Access with AIPowered Solutions
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