SOLUTION: A company borrows $75,000 which is to be repaid with equal payments semiannually for 10 years. The interest rate is 10%. Find the semiannual payments.
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Question 147793: A company borrows $75,000 which is to be repaid with equal payments semiannually for 10 years. The interest rate is 10%. Find the semiannual payments.
Answer by josmiceli(19441) (Show Source): You can put this solution on YOUR website!
Semiannual means twice a years
payments/ten years
The interest is
interest/number of payments = interest/payment
interest/payment
Let = payment against principle /payment
The semiannual payment is
The semiannual payment is $4,125 -answer
check:
This includes the 10% interest, so subtract it out
That's the principle
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