SOLUTION: the loan of 25000 euros is amortized for 8 years with 7% interest (and semiannual capitalization). how much will the semester annuity be?

Question 1201711: the loan of 25000 euros is amortized for 8 years with 7% interest (and semiannual capitalization). how much will the semester annuity be?

Answer by Theo(13342) (Show Source): You can put this solution on YOUR website!
the present value of the mortgage is 25000
the interest rate is 7% per year compounded semi-annually = 3.5% every half year.
the payments are made at the end of each half year for 8 years * 2 = 16 half years.
the payments at the end of each half year will be equal to 2067.12, rounded to two decimal places.
i used the twxas instruments business analyst 2.
a comparable calculator online is at https://arachnoid.com/finance/
here are the results from using that calculator.

the present value is positive because it's money received.
the payment at the end of each half year is negative because it's money spent.
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