1. A loan is to be amortized by equal payments of P 500 each at the end of every six months for 10 years. Interest is based on 7% compounded semi-annually. What is the outstanding debt after 8 years?
2. A loan is to be amortized by equal payments of P 500 each at the end of every three months for 10 years. Interest is based on 7% compounded quarterly. What is the outstanding principal just after the 8th payment? 

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To calculate the outstanding debt after 8 years for the first scenario 6month payments we can use th... View the full answer