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You have taken out an amortized loan in the amount of $50,000 with fixed payments. The interest rate is 10% with semi-annual compounding, and the life of the loan is 5 years. The payments are due at the end of each period.
1. What is the principal you owe at the beginning of the 2nd year?
2. How much interest did you pay over the first year?
(DO BY HAND IF POSSIBLE, I DO NOT HAVE A FINANCIAL CALC)
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