SOLUTION: In return for a loan, with money worth 7% compounded semiannually, a man promises to pay $600 at the end of each 6 months for 8 years. (c)just before his 9th payment.

Question 1195218: In return for a loan, with money worth 7% compounded semiannually, a man promises to pay $600 at the end of each 6 months for 8 years. (c)just before his 9th payment.
Answer by Theo(13342) (Show Source): You can put this solution on YOUR website!
here's my excel spreadsheet.

your solution is that the remaining balance just after the 9th payment is equal to $3,668.73.
you first needed to find the present value of the loan for 600 dollar payment at the end of each semi-annual period for 16 semi-annual periods.
that present value = 7256.47 was the amount of the loan.
the interest rate used was 7% / 2 = 3.5% per semi-annual time period.
here are the results from the calculator at

inputs are everything except pv.
output is pv.
you can see that at the end of the 9th semi-annual time period, the remaining balance was $4,268.73 before the payment was made.
that's your solution.

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