The interest rate on a $14,000 loan is 8.4% compounded semiannually. Semiannual payments will pay off the loan in seven years.
a) Calculate the interest component of Payment 10.
b) Calculate the principal component of Payment 3.
c) Calculate the interest paid in Year 6.
d) How much do Payments 3 to 6 inclusive reduce the principal balance?

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The Answer of The interest rate on a $14,000 loan is 8.4% compounded semiannually. Semiannual payments will pay off the loan in seven years.
a) Calculate the interest component of Payment 10.
b) Calculate the principal component of Payment 3.
c) Calculate the interest paid in Year 6.
d) How much do Payments 3 to 6 inclusive reduce the principal balance?

The Interest Rate on a $14,000 Loan Is 8