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Interest and Semiannual Payments : A company borrows $75,000 which is to be repaid with equal payments semiannually for 10 years. The interest rate is 10%. Find the semiannual payments.

A company borrows $75,000 which is to be repaid with equal payments semiannually for 10 years. The interest rate is 10%. Find the semiannual payments.

A. $3,750.00
B. $6,018.19
C. $4,125.00
D. $5,834.22

Solution Preview

The answer is B

Suppose the semiannual payment is x. The interest rate every half year is 0.1/2=0.05. The current balance is ...

Solution Summary

Semi-annual payments are found.

$2.19