What is the loan balance at the end of first installment

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A contractor's price for a new building was $96,000. You decide to buy the building, making a payment of $12,000 down and financing the balance by making equal payments at the end of every 6 months for 12 years. Interest is 7.3% compounded semi-annually.

Problem a) What is the size of the semi-annual payment? Use PMT function in excel to find the answer

Problem b) For the first payment period, how much interest is paid, how much of the principal is repaid, and what is the loan balance at the end of first installment?

Problem c) For the fifteen payment period, how much interest is paid, how much of the principal is repaid, and what is the loan balance at the end of first installment?

Reference no: EM132929460

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