A contractor's price for a new building was $116,000. You decide to buy the building, making a payment of $23,200 down and financing the balance by making equal payments at the end of every 6 months for for 6 years. Interest is 5.4% compounded semi-annually. 10 1 What is the size of the semi-annual payment that is required to pay of the mortgage in 6 years 4 .5 6 b Create an amortization table 4 Principal paid 17 #Payment amt interest paid Balance 18 19 20 21 22 23 24 25 26 27 28 29 30 For the first payment period, how much interest is paid, how much of the principal is repaid, and what is the loan balance? 31 1.5 32 Interest 33 Repaid Principle 34 Balance For the second pavment period, how much interest is paid, how much Q Taxes Q3 Credit card payment & int Q4 Mortgages Q2 Costs & Profits Ready
A contractor's price for a new building was $116,000. You decide to buy the building, making a payment of $23,200 down and financing the balance by making equal payments at the end of every 6 months for for 6 years. Interest is 5.4% compounded semi-annually. 10 1 What is the size of the semi-annual payment that is required to pay of the mortgage in 6 years 4 .5 6 b Create an amortization table 4 Principal paid 17 #Payment amt interest paid Balance 18 19 20 21 22 23 24 25 26 27 28 29 30 For the first payment period, how much interest is paid, how much of the principal is repaid, and what is the loan balance? 31 1.5 32 Interest 33 Repaid Principle 34 Balance For the second pavment period, how much interest is paid, how much Q Taxes Q3 Credit card payment & int Q4 Mortgages Q2 Costs & Profits Ready
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:A contractor's price for a new building was $116,000. You decide to buy the building, making a
payment of $23,200 down and financing the balance by making equal payments at the end of every
6 months for for 6 years. Interest is 5.4% compounded semi-annually.
10
What is the size of the semi-annual payment that is required to pay of
the mortgage in 6 years
1
2
_3
14
15
16 b Create an amortization table
Principal
17
# Payment amt
interest paid
paid
Balance
18
19
20
21
22
23
24
25
26
27
28
29
30
For the first payment period, how much interest is paid, how much of
the principal is repaid, and what is the loan balance?
Interest
31
1.5
32
33
Repaid Principle
34
Balance
For the second pavment period, how much interest is paid, how much
Q2 Costs & Profits
Q Taxes
Q3 Credit card payment & int
Q4 Mortgages
Ready
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