A loan of $25, 000 is paid off in semi-annual payments over a four year period. ...
A loan of $25, 000 is paid off in semi-annual payments over a four year period. Interest is 6.2% compounded quarterly. What is the size of the payment made at the end of every six months ?
(Please use the financial calculator method (BAII) by showing inputs in the financial calculator)
Homework Answers
Semiannual rate = (1 + 0.062 / 4)^2 - 1 = 1.03124 - 1 = 3.124%
PV = -25000
FV = 0
N = 8
I/Y = 0.03124
CPT PMT = 3,580.07
The size of the payment made at the end of every six months = $3,580.07
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