You are ready to buy a car and you have $4,000 for a down payment and closing costs. Closing costs are estimated to be $500. The interest rate on the loan is 6% per year with semiannual compounding for a 4-year fixed rate loan. The car costs $28,000. What is the semiannual payment on the loan? Fill in the entries in the schedule for the first 3 semmiannual payments. What will the loan balance be after the 6th payment?

Period	Interest paid	Principal Reduction	Loan Balance
0
1
2
3

Answer rating: 100% (QA)

To calculate the semiannual payment on the loan we can use the formula for calculating the payment on an amortizing loan Payment Principal r 1 rn 1 rn ... View the full answer