Micro Brewery borrows $290,000 to be paid off in eight years. The loan payments are semiannual,...
Homework Answers
Since payments are semi-annual, interest to be used = 3% i.e.
6%/2
Number of Periods = 8 x 2 = 16
Since PV Tables is not given, i have calculated values myself, due to which there can be rounding off error.
PV Annuity Factor @3% for 16 periods = 12.5611
Amount of each payment = $290000 / 12.5611 = $23,087.15
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