Question

A lender providing a loan of $7 million requires semi-annual payment of interest at a nominal rate of 7.9% per year, and repa

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Answer #1

=Loan*rate/2+Loan*(rate/2)/((1+rate/2)^(2*t)-1)
=7*7.9%/2+7*(7.9%/2)/((1+7.9%/2)^(2*13)-1)
=0.43558895 million or 435588.95

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