Answer:
Semiannual payment = $ 1391.37
Total payment = $ 8348.22
Interest paid = $ 848.22
Step-by-step explanation:
Since, the semiannual payment formula of a loan,
![P=\frac{PV(\frac{r}{2})}{1-(1+\frac{r}{2})^{-n}}](https://tex.z-dn.net/?f=P%3D%5Cfrac%7BPV%28%5Cfrac%7Br%7D%7B2%7D%29%7D%7B1-%281%2B%5Cfrac%7Br%7D%7B2%7D%29%5E%7B-n%7D%7D)
Where,
PV = present value of the loan,
n = number of semiannual payments,
r = annual rate,
Here, PV = 7500, r = 6.3% =0.063, n = 6,
By substituting the value,
The semiannual payment would be,
![P=\frac{7500(\frac{0.063}{2})}{1-(1+\frac{0.063}{2})^{-6}}](https://tex.z-dn.net/?f=P%3D%5Cfrac%7B7500%28%5Cfrac%7B0.063%7D%7B2%7D%29%7D%7B1-%281%2B%5Cfrac%7B0.063%7D%7B2%7D%29%5E%7B-6%7D%7D)
![\approx \$ 1391.37](https://tex.z-dn.net/?f=%5Capprox%20%5C%24%201391.37)
Also, total payment = semiannual payment × total semiannual periods
= 1391.37 × 6
= $ 8348.22,
Also, the interest paid = total payment - present value
= 8348.22 - 7500
= $ 848.22