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19 July, 07:41

2. A loan for $4000 with interest at 6.75% compounded semi-annually is repaid after 5 years. What is the amount of interest paid?

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  1. 19 July, 09:27
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    Total Interest paid is $713.60

    Loan $4,000.00 x60 months x6.75%

    Payments $78.56X60=4,713.60

    Deduct starting balance of $4,000.00 from total payments

    Total $713.60
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