The following shows an amortization schedule for a loan which calls for level semi-annual payments over 2 years. Fill in the missing values in the amortization schedule and calculate the effective rate of interest. Year Installment Interest paid Principle repaid Outstanding balance 0 - - 0.5 9,088.510 1 2,969.710 1.5 122.380 2 3,151.4900 - 3,151.490 0

The following shows an amortization schedule for a loan which calls for level semi-annual payments over 2 years. Fill in the missing values in the amortization schedule and calculate the effective rate of interest. Year Installment Interest paid Principle repaid Outstanding balance 0 - - 0.5 9,088.510 1 2,969.710 1.5 122.380 2 3,151.4900 - 3,151.490 0

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 12P

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