Asked by Maria Chavarin on May 12, 2024
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Howardson Electric obtained a $90,000 loan at 9.75% compounded monthly. What size of semi-annual payments will repay the loan in 10 years?
Compounded Monthly
Interest calculation method where interest is added to the principal balance every month.
Semi-annual Payments
Payments made twice a year, a common term in the context of loans, bonds, and some types of annuities.
Loan
Funds lent that must be repaid with an added interest charge.
- Identify the necessary monthly or interval-based payment to repay financial obligations or reach a specified total over a fixed term.
Verified Answer
PS
Learning Objectives
- Identify the necessary monthly or interval-based payment to repay financial obligations or reach a specified total over a fixed term.