Question: Directions: Answer the annuity and amortization problem and draw the cash flow diagram A businessman borrowed $300,000 with interest at the rate of 6% compounded

Directions: Answer the annuity and amortization problem and draw the cash flow diagram

  1. A businessman borrowed $300,000 with interest at the rate of 6% compounded semi-annually. He agrees to discharge his obligations by paying a series of 8 equal payments , the first being due at the end of 5 years. Find the semi annual payments.

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