Timothy received a $39,550 loan from a bank that was charging interest at 3.75% compounded semi-annually. a. How much does she need to pay at the end of every 6 months to settle the loan in 3 years? Round to the nearest cent b. What was the amount of interest charged on the loan over the 3-year period? Round to the nearest cent

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 19PROB
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Timothy received a $39,550 loan from a bank that was charging interest at 3.75%
compounded semi-annually.
a. How much does she need to pay at the end of every 6 months to settle the loan in 3
years?
Round to the nearest cent
b. What was the amount of interest charged on the loan over the 3-year period?
Round to the nearest cent
Transcribed Image Text:Timothy received a $39,550 loan from a bank that was charging interest at 3.75% compounded semi-annually. a. How much does she need to pay at the end of every 6 months to settle the loan in 3 years? Round to the nearest cent b. What was the amount of interest charged on the loan over the 3-year period? Round to the nearest cent
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