Question

XYZ Corp. borrows $300,000 to be paid-off in six years. The loan payments are semiannual with the first payment due in six months, and interest is at 6%. What is the amount of each payment?

A) 25,750
B) 29,761
C) 30,139
D) 25,500

Answer 1

The correct option is (C ) i.e. 30,139 since the approximately $300,000 is coming in this case
Option A				Option B				Option C				Option D
25,750	0.9709	25,000		29,761	0.9709	28,894		30,139	0.9709	29,261		25,500	0.9709	24,757
25,750	0.9426	24,272		29,761	0.9426	28,053		30,139	0.9426	28,409		25,500	0.9426	24,036
25,750	0.9151	23,565		29,761	0.9151	27,236		30,139	0.9151	27,581		25,500	0.9151	23,336
25,750	0.8885	22,879		29,761	0.8885	26,442		30,139	0.8885	26,778		25,500	0.8885	22,656
25,750	0.8626	22,212		29,761	0.8626	25,672		30,139	0.8626	25,998		25,500	0.8626	21,997
25,750	0.8375	21,565		29,761	0.8375	24,924		30,139	0.8375	25,241		25,500	0.8375	21,356
25,750	0.8131	20,937		29,761	0.8131	24,198		30,139	0.8131	24,506		25,500	0.8131	20,734
25,750	0.7894	20,327		29,761	0.7894	23,494		30,139	0.7894	23,792		25,500	0.7894	20,130
25,750	0.7664	19,735		29,761	0.7664	22,809		30,139	0.7664	23,099		25,500	0.7664	19,544
25,750	0.7441	19,160		29,761	0.7441	22,145		30,139	0.7441	22,426		25,500	0.7441	18,974
25,750	0.7224	18,602		29,761	0.7224	21,500		30,139	0.7224	21,773		25,500	0.7224	18,422
25,750	0.7014	18,061		29,761	0.7014	20,874		30,139	0.7014	21,139		25,500	0.7014	17,885
		256,316				296,241				300,004				253,827