Question: A $37,000 loan at 8.2% compounded semiannually is to be repaid by semiannual payments of $2500 (except for a smaller final payment). a) What

A $37,000 loan at 8.2% compounded semiannually is to be repaid by semiannual payments of $2500 (except for a smaller final payment). a) What will be the principal component of the sixteenth payment? =$1796.03 b) What will be the interest portion of the sixth payment? =$1298.27 c) How much will Payments 8 to 14 inclusive reduce the principal balance? =$10,317.16 d) How much interest will be paid in the fifth year? What will be the final payment? I have the answers for a-c, but D is giving me issues. The answers for the others are above and i checked in the book to make sure they were right.
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
