# 1. A contractor's price for a new building was $96 000. Slade

Inc., the buyers of the building, paid $12 000 down and financed the balance by making equal payments at the end of every 6 months for 12 years. Interest is 7.3% compounded semi- annually.

(a) What is the size of the semi-annual payment?

(b) For the first payment period, how much interest is paid, how much of the

principal is repaid, and what is the loan balance?

(c) For the second payment period, how much interest is paid, how much of the

principal is repaid, and what is the loan balance?

(d) What is the total cost of the building for Slade Inc.?

(e) What is the total interest included in the payments?

2. A loan of $10 000 with interest at 7.75% compounded annually is to be amortized by equal payments at the end of each year for seven years. Find the size of the annual payments and construct an amortization schedule. Show the total paid and the cost of financing.

3. A loan of $8000 is repaid by equal payments made at the end of every three months for two years. If interest is 7% compounded quarterly, find the size of the quarterly payments and construct an amortization schedule. Show the total paid and the total cost of the loan.

4. A loan of $16 000 with interest at 9% compounded quarterly is repaid in seven years by equal payments made at the end of each year. Find the size of the annual payments and construct an amortization schedule showing the total paid and the total interest.

5. A debt of $12 500 with interest at 7% compounded semi-annually is repaid by payments of $1900 made at the end of every three months. Construct an amortization schedule showing the total paid and the total cost of the debt.

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