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.
My answer is $3,750.00, is this right. Thanks for looking at my answer.
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.
My answer is $3,750.00, is this right. Thanks for looking at my answer.
Your answer is just 75,000/20. What about the interest? A loan is just like an annuity. Use the PVIFA table with 20 periods and 5% interest per period. Or if you have an annuity formula, use that.