You have just arranged for an eight-year bank loan for $200,000 at an interest rate of 10% p.a. with interest compounded semi-annually. The loan will be repaid in equal semi-annual instalments and the first payment will be due six months from today. Assuming end-of-the-period cash flows.

The total amount still owed the bank at the end of year 6 will be closest to?

Answer rating: 100% (QA)

To calculate the total amount still owed to the bank at the end of year 6 we need to determine the s... View the full answer