A 20 year loan requires semiannual payments of $1073.33 including interest at 6.8% compounded semiannually.
a) what was the original amount of the loan?
FV = PMT ((( 1 + i)^n - 1)/i)
i = 0.068 / 2
1073.33 (1 + 0.034)^40 - 1 )
_______________
0.034
FV = 85 704.59
85,704.59 = pv ( 1 + 0.034 )^40
Pv = 22,500
B) What is the loan's balance 8.5 years later (just after the scheduled payment)
22 500 ( 1 + 0.034)^17 or 85 704.59/(1+0.034)^40 - 1 )
thats where i'm stuck
A 20 year loan requires semiannual payments of 1037.33 including interest at 6.8% compounded semiannually.
a) what was the original amount of the loan?
b) What is the loan's balance 8.5 years later ( just before the scheduled payment ) ?