SOLUTION: A debt of $5000 is to be amortized with 12 equal semiannual payments. If the interest rate is 12%, compounded semiannually, what is the size of each payment? (Round your answer to

Question 1088030: A debt of $5000 is to be amortized with 12 equal semiannual payments. If the interest rate is 12%, compounded semiannually, what is the size of each payment? (Round your answer to the nearest cent.)
How much $ ?
Answer by ankor@dixie-net.com(22740) (Show Source): You can put this solution on YOUR website!
A debt of $5000 is to be amortized with 12 equal semiannual payments.
If the interest rate is 12%, compounded semiannually, what is the size of each payment? (Round your answer to the nearest cent.)
:
The amortization formula:
P = 5000
r = .06; (.12/2; compounded twice a year)
n = 12 no. of payments
:

I'll let you do the math here with your calc
I got a payment of
A = $596.39
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