A $15,000 debt is to be amortized in 12 equal semiannual payments at an
annual interest rate of 11% on the unpaid balance. Construct an
amortization table to determine the unpaid balance after two payments
have been made.
The interest rate per period is
r = 0.11/2 = 0.055
then There are
n = 12
and you're borrowing
soL = 15000
when we Plug all of this into the formula below
P = L(r(1 + r)^12)/((1 + r)^12 - 1)
P = 15000(0.055(1 + 0.055)^12)/((1 + 0.055)^12 - 1)
which shows P = 1740.43846787421
P = 1740.44
So that's the monthly payment
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