The interest rate on a $50,000 loan is 7.6% compounded semi-annually. Quarterly payments will pay off the loan in ten years.
a) Calculate the interest component of Payment 8.
b) Calculate the principal component of Payment 33.
c) Calculate the total interest in Payments 21 to 30 inclusive.
d) Calculate the reduction of principal in Year 3.

Question

Quizplus · Accepted Answer

The Answer is a) $822.74; b) $1,542.15; c) $4,474.70; d) $4,055.64

The Interest Rate on a $50,000 Loan Is 7