Unformatted text preview: 3. You take out a 4 year loan for $1,000. The interest rate is 4% (quoted as an APR, compounded semiannually), and the loan requires you to make equal payments every 6 months for 4 years (i.e. the first payment will be 6 months from today, and there will be eight payments in all). How much of the principal is paid off in year 3 (i.e. with the 5 th and 6 th payment). Please write your answer in the box. Answer to #2: ____________________ Name: ________________ SID # : ________________ Section Number _________ Answer to #1: ____________________ Answer to #3: ____________________...
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 Annual Percentage Rate, Debt, Interest, Mortgage loan, quarterly compounding

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