Question: 6. A borrower borrows on a five year loan $5,000 from a bank at 10% and will pay back the loan in ten equal $

  • 6. A borrower borrows on a five year loan $5,000 from a bank at 10% and will pay back the loan in ten equal $ payments (semi-annually) at the end of each time period. How much is each equal payment, how much principal and interest is paid back, and how much interest is paid back? (Note-since the borrower repays the loan semi-annually, the % is divided by 2 and the exponent (5 years) is multiplied by 2). Also since it is a loan(payment), calculate the factor and then divide the factor into the $5,000, do not multiply the factor by the $5,000.

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