Question

On January 1, 1970, Smith borrows $5,000 at the nominal annual interest rate of 4%\compounded semiannually. On January 1, 1972, Smith borrows an additional $3,000 at the\nominal annual interest rate of 5% compounded semiannually. No interest or principal\payments are made on either loan prior to 1974. On January 1, 1974, the two loans are\consolidated and subsequent interest is charged at a nominal annual rate of 6%\compounded semiannually. Smith repays the loans with level semiannual payments\beginning July 1, 1974 and ending January 1, 1980. In which of the following ranges is\the amount of each of these payments?\A Less than $900\B At least $900, but less than $925\C At least $925, but less than $950\D At least $950, but less th 075\E At least $975

          On January 1, 1970, Smith borrows $5,000 at the nominal annual interest rate of 4%\compounded semiannually. On January 1, 1972, Smith borrows an additional $3,000 at the\nominal annual interest rate of 5% compounded semiannually. No interest or principal\payments are made on either loan prior to 1974. On January 1, 1974, the two loans are\consolidated and subsequent interest is charged at a nominal annual rate of 6%\compounded semiannually. Smith repays the loans with level semiannual payments\beginning July 1, 1974 and ending January 1, 1980. In which of the following ranges is\the amount of each of these payments?\A Less than $900\B At least $900, but less than $925\C At least $925, but less than $950\D At least $950, but less th 075\E At least $975

$On January 1, 1970, Smith borrows 5,000 at the nominal annual interest rate of 4%\compounded semiannually. On January 1, 1972, Smith borrows an additional $3,000 at the\nominal annual interest rate of 5% compounded semiannually. No interest or principal\payments are made on either loan prior to 1974. On January 1, 1974, the two loans are\consolidated and subsequent interest is charged at a nominal annual rate of 6%\compounded semiannually. Smith repays the loans with level semiannual payments\beginning July 1, 1974 and ending January 1, 1980. In which of the following ranges is\the amount of each of these payments?\A Less than $900\B At least $900, but less than $925\C At least $925, but less than $950\D At least $950, but less th 075\E At least $975$

Added by Xavier S.

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