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What is the cost of the debt for the first three years

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A debt of $29,800 is repaid by payments of $2,610 made at the end of every six months. Interest is 11.25% compounded monthly.

Problem (a) What is the number of payments needed to retire the debt?

Problem (b) What is the cost of the debt for the first three years?

Problem (c) What is the interest paid in the sixth payment period?

Problem (d) Construct a partial amortization schedule showing details of the first three payments, the last three payments, and totals.

Reference no: EM132906347

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