Question 147793
Semiannual means twice a years
{{{2*10 = 20}}}payments/ten years
The interest is {{{.1*75000 = 7500}}}
interest/number of payments = interest/payment
{{{7500/20 = 375}}}interest/payment
Let {{{p}}} = payment against principle /payment
{{{(p + 375)*20 = 75000 + 7500}}}
{{{20p + 7500 = 75000 + 7500}}}
{{{20p = 75000}}}
{{{p = 3750}}}
The semiannual payment is
{{{p + 375 = 3750 + 375}}}
{{{p + 375 = 4125}}}
The semiannual payment is $4,125 -answer
check:
{{{4125*20 = 82500}}}
This includes the 10% interest, so subtract it out
{{{82500 - 7500 = 75000}}}
That's the principle