Al and Monica Lewandowski financed the renovation of their basement suite using a $23, 500 home improvement loan from their bank. End-of-month pay- ments were based on an interest rate of 5.95% compounded semiannually and a five-year amortization.
(a) Construct a complete amortization schedule for the loan payments.
(b) Construct a partial loan amortization schedule showing details of the first two payments, Payments 47 and 48, and the last two payments. What total interest will the Lewandowski’s pay over the life of the loan? Indicate how you arrived at all the balances in the partial schedule.