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Richard borrowed 50,000 from a bank at 12% (APR) semiannually compounded interest to be repaid in...

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Finance

Richard borrowed 50,000 from a bank at 12% (APR) semiannuallycompounded interest to be repaid in 10 years (12 equalinstallments) . Calculate the interest and principal paid in thefourth year. USE EXCEL FORMULAS SO I CAN SEE THE INPUTS PLEASE ANDSHOW THE WORK I WANT TO LEARN IT!

Answer & Explanation Solved by verified expert
3.7 Ratings (381 Votes)
We are given the following informationLoan Period10Interest rate12PMT frequency2Loan amount50000We need to solve the following equation to arrive at therequired PMTSo the PMT is 435923 We can get the following scheduleYearOpening BalanceLoanPMTInterestPrincipal repaymentClosing    See Answer
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Transcribed Image Text

Richard borrowed 50,000 from a bank at 12% (APR) semiannuallycompounded interest to be repaid in 10 years (12 equalinstallments) . Calculate the interest and principal paid in thefourth year. USE EXCEL FORMULAS SO I CAN SEE THE INPUTS PLEASE ANDSHOW THE WORK I WANT TO LEARN IT!

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