The interest rate on a $14,700 loan is 9.1% compounded semiannually. Semiannual payments will pay off the loan in eight years. (Do not round intermediate calculations. Round the PMT and final answers to 2 decimal places.) a. Calculate the interest component of Payment 11. Interest $ b. Calculate the principal component of Payment 3. Principal $ c. Calculate the interest paid in Year 7. Interest paid $ d. How much do Payments 3 to 6 inclusive reduce the principal balance? Principal reduction $

Principles of Accounting Volume 1
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ISBN:9781947172685
Author:OpenStax
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Chapter12: Current Liabilities
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The interest rate on a $14,700 loan is 9.1% compounded semiannually. Semiannual payments will pay off the loan in eight years. (Do
not round intermediate calculations. Round the PMT and final answers to 2 decimal places.)
a. Calculate the interest component of Payment 11.
Interest
$
b. Calculate the principal component of Payment 3.
Principal
$
c. Calculate the interest paid in Year 7.
Interest paid
$
d. How much do Payments 3 to 6 inclusive reduce the principal balance?
Principal reduction
$
Transcribed Image Text:The interest rate on a $14,700 loan is 9.1% compounded semiannually. Semiannual payments will pay off the loan in eight years. (Do not round intermediate calculations. Round the PMT and final answers to 2 decimal places.) a. Calculate the interest component of Payment 11. Interest $ b. Calculate the principal component of Payment 3. Principal $ c. Calculate the interest paid in Year 7. Interest paid $ d. How much do Payments 3 to 6 inclusive reduce the principal balance? Principal reduction $
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