To determine The annual payment and prepare the amortization schedule. Explanation Given: The insurance firm is $ 72000 with 9.5 % annual compounded interest rate for 9 semiannual years. Formula used: The present value P of an annuity of the payments and n consecutive interest periods at a rate of interest i is given as follows. P = R [ 1 − ( 1 + i ) − n i ] ..... ( 1 ) Calculation: It is given that principal is 72000 , time is 9 semi-annual years and rate is 9.5 % . Substitute 9 for n , 72000 for P and 0.0475 for i in equation (1). 72000 = R [ 1 − ( 1 + 0.0475 ) − 9 0.0475 ] Further, solve the above expression. R = 72000 × 0.0475 1 − ( 1 + 0.0475 ) − 9 = 3420 0.3414 = 10017.21 If the person pays $ 10017.21 with 9.5 % compound interest annually then loan cleared in the 9 semiannual years. Now interest on first payment on this total amount $ 72000 for 6 months is calculated as follows. I = 72000 ( 0

Calculus with Applications (11th Edition)

11th Edition

ISBN: 9780321979421

Author: Margaret L. Lial, Raymond N. Greenwell, Nathan P. Ritchey

Publisher: PEARSON

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Chapter 12.2, Problem 56E

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The annual payment and prepare the amortization schedule.

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Chapter 12.2, Problem 55E

Chapter 12.2, Problem 57E

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Chapter 12 Solutions

Calculus with Applications (11th Edition)

Ch. 12.1 - Find the first four terms of the sequence having...Ch. 12.1 - Prob. 2YT Ch. 12.1 - Prob. 3YT Ch. 12.1 - Prob. 4YT Ch. 12.1 - Prob. 5YT Ch. 12.1 - Prob. 1E Ch. 12.1 - Prob. 2E Ch. 12.1 - Prob. 3E Ch. 12.1 - List the first n terms of the geometric sequence...Ch. 12.1 - Prob. 5E

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