Answer to Question #263447 in Financial Math for amelia

Question

A debt of P120,000 is to be amortized by equal payments at the end of every quarter for 2 years. If the interest charged is 12% compounded semi-annually, find the outstanding principal after each payment is made. Construct an amortization schedule.

Answer 1

Debt refers to the desired sum of money borrowed by an individual or an entity through any financial institution to an entity at the desired interest rate to be paid off in a given period of time.