Question

A loan of $36,550.00 at 5.00% compounded semi-annually is to be repaid with payments at the end of every six months. The loan was settled in five years. a) Calculate the size of the periodic payment rounded to the nearest cent. b) Calculate the total interest paid rounded to the nearest cent.

Name: a loan of 3655000 at 500 compunded semi annually is to be repaid with payment at the end of every six month the loan was settled in five year a calculate the size of periodic payment round t 69886
Uploaded: 2022-05-05T13:29:12-08:00
Duration: 3 min 40 s
Channel: Shaiju T
Description: a loan of 3655000 at 500 compunded semi annually is to be repaid with payment at the end of every six month the loan was settled in five year a calculate the size of periodic payment round t 69886

          A loan of $36,550.00 at 5.00% compounded semi-annually is to be repaid with payments at the end of every six months. The loan was settled in five years. 
a) Calculate the size of the periodic payment rounded to the nearest cent.
b) Calculate the total interest paid rounded to the nearest cent.

Added by Katrina S.

Calculus: Early Transcendentals

James Stewart 8th Edition

Instant Answer

Solved by Expert Shaiju T

05/05/2022

Step 1

Given: Loan amount = $36,550.00 Semi-annual interest rate = 5.00% (2.5% per period) Number of periods = 10 (5 years with payments every 6 months) Calculate the present factor: Present factor = (1 - (1 + 0.025)^(-10)) / 0.025 Present factor ≈ 8.752 Calculate the Show more…

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A loan of $36,550.00 at 5.00% compounded semi-annually is to be repaid with payments at the end of every six months. The loan was settled in five years. a) Calculate the size of the periodic payment rounded to the nearest cent. b) Calculate the total interest paid rounded to the nearest cent.