Question: A $ 3 9 , 0 0 0 loan at 8 . 2 % compounded semiannually is to be repaid by semiannual payments of $

A $39,000 loan at 8.2% compounded semiannually is to be repaid by semiannual payments of $2,700(except for a smaller final payment).(Do not round intermediate calculations and round your final answers to 2 decimal places.)
a. What will be the principal component of the seventeenth payment?
Principal $
b. What will be the interest portion of the sixth payment?
Interest $
c. How much will Payments 7 to 15 inclusive reduce the principal balance?
Principal reduction $
d. How much interest will be paid in the sixth year?
Interest paid $
e. What will be the final payment?
Final payment $

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!