Problemtaylor farms is borrowing 75000 for 2 years the loan, Ask an Expert

Finance

Problem:

Taylor Farms is borrowing $75,000 for 2 years. The loan calls for equal payment at the end of every 6 months. Loan rate is 9 percent.

Required:

Question 1: What is the semiannual payment?

Question 2: How much of the first payment will be used to reduce the principal balance?

Question 3: How much of the second payment is interest?

Question 4: Construct the amortization schedule

Note: Please show how to work it out.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91162736

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