Calculate the amount of each semiannual payment

Reference no: EM132157862

Question: You are taking a $2000 loan. You will pay it back in four equal amounts, paid every 6 months starting 3 years from now. The interest rate is 6% compounded semiannually. Calculate:

(a) The effective interest rate, based on both semiannual and continuous compounding

(b) The amount of each semiannual payment

Reference no: EM132157862

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