document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1141811>Question 1141811</A>: <I><SPAN STYLE=\"word-break: break-all;\"> What is the nominal annual rate of interest compounded quarterly if a loan of $12,500 is paid in six years by payments of $1,000 made at the end of every six months? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #762440 by </B><A HREF=/tutors/aboutme.mpl?userid=greenestamps><B>greenestamps(13198)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=greenestamps><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=greenestamps><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=762440\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> <br><BR>\n" );
document.write( "(1) The standard loan repayment formulas can only be used when the frequency of compounding is the same as the frequency of the payments.<br><BR>\n" );
document.write( "(2) Payments of $1,000 twice a year for 6 years means total payments of $12,000.  That is less than the loan amount.  The numbers you give don't make any sense. </SPAN>\n" );
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