SOLUTION: A company borrows $75,000 which is to be repaid with equal payments semiannual for 10 years. The interest rate is 10%. Find the semiannual payments.
After looking at the PVIFA
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Question 45425This question is from textbook Finite math
: A company borrows $75,000 which is to be repaid with equal payments semiannual for 10 years. The interest rate is 10%. Find the semiannual payments.
After looking at the PVIFA Table I came up with $3,750.00. This question is giving me trouble also. Thanks so much for any help.
This question is from textbook Finite math
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
A company borrows $75,000 which is to be repaid with equal payments semiannual for 10 years. The interest rate is 10%. Find the semiannual payments.
Present Value= (periodic payment)[1-(1+i)-n]/i ,where i is the periodic
payment interest and n is the total number of periodic payments.
75000=PP[1-(1+0.05)^-20]/0.05
[0.05(75000)]/[1.05)^-20]= pp
3750/0.99969927...=pp
Periodic payment = $3750.00
Cheers,
Stan H.
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