A debt of $18,000 is being repaid by 17 equal semiannual payments, with the first payment to be made six months from now. Interest is at the rate of 3% compounded semiannually. However, after two years, the interest rate increases to 4% compounded semiannually. If the debt must be paid off on the original date agreed upon, find the new semiannual payment. The new semiannual payment is $ (Round the final answer to the nearest dollar as needed. Round all intermediate values to six decimal places as needed.)

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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A debt of $18,000 is being repaid by 17 equal semiannual payments, with the first payment to be made six months from now.
Interest is at the rate of 3% compounded semiannually. However, after two years, the interest rate increases to 4%
compounded semiannually. If the debt must be paid off on the original date agreed upon, find the new semiannual payment.
The new semiannual payment is $
(Round the final answer to the nearest dollar as needed. Round all intermediate values to six decimal places as needed.)
Transcribed Image Text:A debt of $18,000 is being repaid by 17 equal semiannual payments, with the first payment to be made six months from now. Interest is at the rate of 3% compounded semiannually. However, after two years, the interest rate increases to 4% compounded semiannually. If the debt must be paid off on the original date agreed upon, find the new semiannual payment. The new semiannual payment is $ (Round the final answer to the nearest dollar as needed. Round all intermediate values to six decimal places as needed.)
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