i = .06/24 =.0025
n = 5(24) = 120
Let the payment be P
P( 1 - 1.0025^-120)/.0025 = 18000
I get P = $173.81
Andy needs to pay off a loan of $18,000 in 5 years. Find the amortization payment he would need to make each bi-monthly pay period (twice a month) at 6% compounded bi-monthly, in order to pay off
the loan.
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