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A $42,000 loan at 8.2% compounded semiannually is to be repaid by semiannual payments of $3,000 (except for a smaller fina payment). (Do not round intermediate calculations and round your final answers to 2 decimal places.) a. What will be the principal component of the sixteenth payment? Principal $ b. What will be the interest portion of the sixth payment? Interest $ c. How much will Payments 7 to 15 inclusive reduce the principal balance? Principal reduction $ d. How much interest will be paid in the fourth year? Interest paid $ e. What will be the final payment? Final payment $

A $42,000 loan at 8.2% compounded semiannually is to be repaid by semiannual payments of $3,000 (except for a smaller fina payment). (Do not round intermediate calculations and round your final answers to 2 decimal places.) a. What will be the principal component of the sixteenth payment? Principal $ b. What will be the interest portion of the sixth payment? Interest $ c. How much will Payments 7 to 15 inclusive reduce the principal balance? Principal reduction $ d. How much interest will be paid in the fourth year? Interest paid $ e. What will be the final payment? Final payment $

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Ee. 272.

A $42,000 loan at 8.2% compounded semiannually is to be repaid by semiannual payments of $3,000 (except for a smaller final payment). (Do not round intermediate calculations and round your final answers to 2 decimal places.) a. What will be the principal component of the sixteenth payment? Principal $ b. What will be the interest portion of the sixth payment? $ c. How much will Payments 7 to 15 inclusive reduce the principal balance? Principal reduction d. How much interest will be paid in the fourth year? Interest paid $ e. What will be the final payment? Final payment $ Interest
Transcribed Image Text:A $42,000 loan at 8.2% compounded semiannually is to be repaid by semiannual payments of $3,000 (except for a smaller final payment). (Do not round intermediate calculations and round your final answers to 2 decimal places.) a. What will be the principal component of the sixteenth payment? Principal $ b. What will be the interest portion of the sixth payment? $ c. How much will Payments 7 to 15 inclusive reduce the principal balance? Principal reduction d. How much interest will be paid in the fourth year? Interest paid $ e. What will be the final payment? Final payment $ Interest
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