The interest rate on a $14,600 loan is 10.0% compounded semiannually. Semiannual payments will pay off the loan in seven years. (Do not round Intermedlate calculations. Round the PMT and final answers to 2 declmal places.) a. Calculate the interest component of Payment 10. Interest 24 b. Calculate the principal component of Payment 7. Principal c. Calculate the interest paid in Year 6. Interest paid d. How much do Payments 7 to 10 inclusive reduce the principal balance? Principal reduction
The interest rate on a $14,600 loan is 10.0% compounded semiannually. Semiannual payments will pay off the loan in seven years. (Do not round Intermedlate calculations. Round the PMT and final answers to 2 declmal places.) a. Calculate the interest component of Payment 10. Interest 24 b. Calculate the principal component of Payment 7. Principal c. Calculate the interest paid in Year 6. Interest paid d. How much do Payments 7 to 10 inclusive reduce the principal balance? Principal reduction
Chapter4: Time Value Of Money
Section4.17: Amortized Loans
Problem 1ST
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