Rola Inc. borrowed $42 000.00 at 7% compounded semi-annually. The loan is repaid by payments of $4700.00 due at the end of every six months.
a) How many payments are needed?
b) How much of the principal will be repaid by the 6th payment?
c) Prepare a partial amortization schedule showing the details of the last three payments and totals.

Question

Quizplus · Accepted Answer

The Answer of Rola Inc. borrowed $42 000.00 at 7% compounded semi-annually. The loan is repaid by payments of $4700.00 due at the end of every six months.
a) How many payments are needed?
b) How much of the principal will be repaid by the 6th payment?
c) Prepare a partial amortization schedule showing the details of the last three payments and totals.

Rola Inc Borrowed $42 000