Question

A 20 year loan requires semi-annual payments of $1333.28 including interest at 10.75% compounded semi annually. what is the original amount of the loan and what will be the balance of the loan 8.5 years later (just after the scheduled payment?)

Answer 1

PV = 1333.28(1 - 1.05375^-40)/.05375
= $21750.00

Balance after 8.5 year
= 21750.00(1.05375)^17 - 1333.28(1.05375^17 - 1/.05375
= $17365.12

check my arithmetic