SOLUTION: In return for a loan, with money worth 7% compounded semiannually, a man promises to pay $600 at the end of each 6 months for 8 years. (b) Find his remaining liability just after h

Algebra ->  Finance -> SOLUTION: In return for a loan, with money worth 7% compounded semiannually, a man promises to pay $600 at the end of each 6 months for 8 years. (b) Find his remaining liability just after h      Log On


   

Question 1195221: In return for a loan, with money worth 7% compounded semiannually, a man promises to pay $600 at the end of each 6 months for 8 years. (b) Find his remaining liability just after his 6th payment.
Answer by Theo(13342) About Me  (Show Source):
You can put this solution on YOUR website!
i used the ti-ba-ii calculator to solve this.
inputs were:
present value = 0
future value = 0
interest rate = 7%/2 = 3.5%
number of time periods = 8 * 2 = 16 minus 6 = 10 remaining time periods after the 6th payment was made.
payments = -600
payments are made at the end of each time period.
output was present value = 4,989.96 rounded to the nearest penny.
that's what the remaining liability was after 6 payments were made.
you can duplicated the results with the use of the online calculator at /
results are shown below:

let me know if you have any questions.
theo