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The interest rate on a $64,000 loan is 9.6% compounded semiannually. Quarterly payments will pay off...

The interest rate on a $64,000 loan is 9.6% compounded semiannually. Quarterly payments will pay off the loan in fifteen years. (Do not round intermediate calculations and round your final answers to 2 decimal places.)

a.

Calculate the interest component of Payment 13.

  Interest $   

    

b.

Calculate the principal component of Payment 52.

  Principal $   

   

c.

Calculate the total interest in Payments 41 to 50 inclusive.

  Total interest $   

  

d.

Calculate the reduction of principal in Year 5.

  Principal reduction $   
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Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

A B с 1 2 3 4 5 6 7 8 9 10 Loan amount Term in years APR compounded semiannually Quarterly interest rate No. of quarterly pay

Cell reference -

C23 JX A В. с 1 2 3 4 5 6 7 8 9 10 11 12 Loan amount Term in years APR compounded semiannually Quarterly interest rate No. of

Hope it will help, please do comment if you need any further explanation. Your feedback would be highly appreciated.

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