00:01
In this problem we have given a loan of $10 ,000.
00:05
So we do have a loan of $10 ,000 is to be repaid by equal payments at the end of six months.
00:13
So this has to be done payment after six months and this has to be done for five years.
00:26
Now we have to find this semi -annual payment if money is worth 18 % compounded monthly.
00:34
So, this is compounded monthly.
00:42
So here we can say r is equals to 18%.
00:46
Now we have to find semi -annual payment.
00:49
So we have to calculate for 6 months and we have provided that this is 18 % is the compounded monthly interest.
00:57
So we can say p prime would be the amount is equals to principal amount multiplied with 1 plus rate divided with 100, raise to the power 6.
01:09
So, we do have amount which is $10 ,000...