Question

OMAT 230 OS X Microsoft Office Home X B MATH 230 051 Amortization - x + ment/9286 Question 3 (6) Corey received a loan of $26,000 at 4.5% compounded semi-annually. He had to make payments at the end of every half-year for a period of 5 years to settle the loan. AB CLOSE DATE Sun, March 15th 11:59 pm Submit Print a. Calculate the size of payments. Save Progress 0.00 Round to the nearest cent b. Fill in the partial amortization schedule for the loan, rounding your answers to two decimal places. Payment Payment Number Interest Portion Principal Portion Principal Balance $26,000.00 SO 00 $0.00 $0.00 $0.00 - $0.00 $0.00 S0.00 $0.00 : = $0.00 $0.00 $0.00 $0.00 $0 00 $0.00 $0.00 0.00 $0.00 $0 00 Total

loan amortization schedule question

Answer 1

a. Size of the payment

A B C D E F 1 a. 2 Loan amount 3 Intererest rate 4 Years 5 Type $26,000 4.50% 5 years Compunded Semi annually 6 10 =B4*2 2.25% =B3/2 7 Number of periods 8 Interest rate per period 9 10 Annuity Factor 11 12 Size of Payment 8.866 = (1-(1+B8)A-B7)/B8) 1-(1+r) $2,932.48 Annuity Factor =

The size of the payment is $2,932.48

b. Amortization Schedule