Fourteen years and three months ago, you took out a 30- year loan of $300,000. The loan has a 7% APR with semi-annual compounding. What is the ratio of payment that goes towards interest payment on the loan in the past year? Please show the intermediate steps of how you solve the question.

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter4: Time Value Of Money
Section4.17: Amortized Loans
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Fourteen years and three months ago, you took out a 30- year loan of $300,000. The loan has a 7% APR with semi-annual compounding. What is the ratio of payment that goes towards interest payment on the loan in the past year? Please show the intermediate steps of how you solve the question.

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