Micro Brewery borrows $300,000 to be paid off in three years. The loan payments are semiannual with the first payment due in six months, and interest is at 6%. What is the amount of each payment?
A)$ 55,379.
B)$106,059.
C)$ 30,138.
D)$ 60,276.$300,000 5.41719* = $55,379 *PVA of $1: n=6; i=3%

Question

Quizplus · Accepted Answer

The loan payments are semiannual, meaning there will be six payments in total (three years x 2 payments per year). Using the present value of an annuity formula, we can find that each payment will be $55,379.

Micro Brewery Borrows $300,000 to Be Paid Off in Three