Question

When Albertina opened her law office, she bought $18,000 worth of law books and $7,300 worth of furniture. She paid $1,400 down and agreed to amortize the balance with semiannual payments
for 6 years at 12% compounded semiannually.

Find the amount of each payment.

What is the amount of each payment?

(Round to the nearest cent as needed)

Answer 1

When her lung had been reduced below $5000 she could pay the rest and must know how many payments were left because there's a grand total of 10 payments. So let's, uh let's plot these out. Um, so I'm gonna plot a line of why equals 5000 and I'm gonna plant a line, someone have a Y equals 5000. And then there's a formula for that was found in the text to find the amount left over as our times one minus one plus I to the negative in minus X. However, I will tell us how much is left to be paid. So what I'm gonna put into my why equals as I'm gonna put 24 65 82 times one minus 1.0 for to the negative 10 minus sex all over 0.4 Okay, so let's go put that in into our computations. Just clearing my wine menus. 5000 and I'm going to have our values. 24 65.82 times one minus 1.0 for to the negative parentheses. 10 minus acts and divided by zero You hear before. And so that happens at 7.816 payments. So somewhere after her seventh payment on before her eighth payment eso when she goes under, that will be for her eighth payment. Um, so eighth payment puts her under 5000 on, then. Now the eight payments air done. That means, uh that she will have to payments left over. And I think that's what the question was asking. So there were two payments left.