1. P = Po(1+r)^n.
r = 0.046/2 = 0.023 = Semi-annual
% rate.
n = 2Comp./yr. * 8.5yrs. = 17 Compounding periods.
P = 26,000(1.023)^17 = $38,270.058.
8.5yrs. = 102 Months.
38,270.058/102 = $375.20/Mo.
2. I = 38,270.06 - 26,000 = $12,270.06.
Karen obtained a $26,000 loan at 4.6% compounded semiannually.
a-1.
What monthly payment will repay the loan in 8 1/2 years? (Do not round intermediate calculations and round your final answer to 2 decimal places.)
Monthly payment $
a-2.
How much interest will Karen pay over the life of the loan
1 answer
0 answers