10: x v fxBFor the second payment period, how much interest is paid, how muchof the principal is repaid, and what is the loan balance?InterestRepaid PrincipleBalancee What is the total interest included in your payments?f What is the total cost of the building A contractor's price for a new building was $116,000. You decide to buy the building, making apayment of $23,200 down and financing the balance by making equal payments at the end of every6 months for for 6 years. Interest is 5.4% compounded semi-annually.10

Payment of loan is given by L = E(1-(1+r)-n)/r Therefore, L = loan taken = 116000 - 23200 = 92800…

Answered: A contractor's price for a new building…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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.