Problem:
Taylor Farms is borrowing $75,000 for 2 years. The loan calls for equal payment at the end of every 6 months. Loan rate is 9 percent.
Required:
Question 1: What is the semiannual payment?
Question 2: How much of the first payment will be used to reduce the principal balance?
Question 3: How much of the second payment is interest?
Question 4: Construct the amortization schedule
Note: Please show how to work it out.