**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: ____________________...

View
Full
Document