document.write( "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. \n" ); document.write( "

Algebra.Com's Answer #108335 by josmiceli(19441) $\"\"$ $\"About$

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Semiannual means twice a years
\n" ); document.write( " $\"2%2A10+=+20\"$ payments/ten years
\n" ); document.write( "The interest is $\".1%2A75000+=+7500\"$
\n" ); document.write( "interest/number of payments = interest/payment
\n" ); document.write( " $\"7500%2F20+=+375\"$ interest/payment
\n" ); document.write( "Let $\"p\"$ = payment against principle /payment
\n" ); document.write( " $\"%28p+%2B+375%29%2A20+=+75000+%2B+7500\"$
\n" ); document.write( " $\"20p+%2B+7500+=+75000+%2B+7500\"$
\n" ); document.write( " $\"20p+=+75000\"$
\n" ); document.write( " $\"p+=+3750\"$
\n" ); document.write( "The semiannual payment is
\n" ); document.write( " $\"p+%2B+375+=+3750+%2B+375\"$
\n" ); document.write( " $\"p+%2B+375+=+4125\"$
\n" ); document.write( "The semiannual payment is $4,125 -answer
\n" ); document.write( "check:
\n" ); document.write( " $\"4125%2A20+=+82500\"$
\n" ); document.write( "This includes the 10% interest, so subtract it out
\n" ); document.write( " $\"82500+-+7500+=+75000\"$
\n" ); document.write( "That's the principle
\n" ); document.write( " \n" ); document.write( "

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