Question

4. Ms. Klein borrowed $2,000 from a bank on annuity for 2 years at 10% annual interest compounded and payable semiannually (every six months). Calculate the semiannual payments and provide a table that shows semiannual payment, balance, interest payment, payment to principal for each payment as well as total amount which Ms. Klein will pay to the bank for the borrowed amount including interest and principal payments in the entire period of two years.

Answer 1

The given data is executed in an excel:

The excel calculation and formula used are shown below:

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