Miller borrows $300,000 to be paid off in three years.The loan payments are semiannual with the first payment due in six months,and interest is at 6%.What is the amount of each payment?

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The correct answer is A.The amount of each payment can be calculated using the formula for the present value of an annuity:PV = PMT * [1 - (1 + r)^-n] / rwhere:PV is the present value of the loanPMT is the amount of each paymentr is the interest rate per periodn is the number of periodsIn this case, the present value of the loan is $300,000, the interest rate is 6% per year, and the number of periods is 6 (since the payments are semiannual and there are 3 years).Substituting these values into the formula, we get:$300,000 = PMT * [1 - (1 + 0.06/2)^-6] / (0.06/2)Solving for PMT, we get:PMT = $55,379.

Miller Borrows $300,000 to Be Paid Off in Three Years