Annuity Payments and Amortization Schedule Consider Carrie Asks Miranda to Help

question 8

Essay

Annuity Payments and Amortization Schedule Consider Carrie asks Miranda to help with her 20 percent down payment on her apartment.Miranda is willing to loan Carrie $30,000,but she is requiring 6.5 percent interest and semi-annual payments over three years to repay the loan.Carrie wants to deduct the loan's interest from her taxes,and Miranda must show the interest income on her taxes,so they need to know how much interest is included each year in the payments.Compute the semi-annual payments and create an amortization schedule to determine the interest paid each year.

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Definitions:

Freudian Psychoanalytic

A therapeutic approach and theory of personality developed by Sigmund Freud that emphasizes unconscious motivations and conflicts, especially as they originate in childhood.

Mania

A state or episode of euphoria or frenzied activity in which people may have an exaggerated belief that the world is theirs for the taking.

Motivational

Pertaining to motivation or being aimed at stimulating someone's desire to do something.

Behavioral

Relating to the actions or reactions of a person or animal in response to external or internal stimuli.