Rola Inc Borrowed $42 000

question 3

Essay

Rola Inc. borrowed $42 000.00 at 7% compounded semi-annually. The loan is repaid by payments of $4700.00 due at the end of every six months.
a) How many payments are needed?
b) How much of the principal will be repaid by the 6th payment?
c) Prepare a partial amortization schedule showing the details of the last three payments and totals.

---

Definitions:

Population Average

The mean value of a particular characteristic or measurement across an entire population.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how much individual values in a dataset differ from the mean.

Statistical Significance

A measure that indicates whether the results of a study are likely not due to chance.

Scatterplot

A type of graph used in statistics to display values for typically two variables for a set of data, where each dot represents one observation.