Seth, Tori, and Uwe each borrow $6000 for 6 years at 6% interest compounded semi-annually....
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Accounting
Seth, Tori, and Uwe each borrow $6000 for 6 years at 6% interest compounded semi-annually. Seth makes no payments until the sixth year when he pay all the principal and interest in one lump sum. Tori pays interest only, that is she pays the accumulated interest every 6 months, and then pays the principal back at the end of the sixth year. Uwe pays back the loan with 6 level payments of X at the end of each year.
a) What is X?
b) How much interest do each of them pay? (i.e how much more than the $6000 they borrowed does each of them pay over the lifetime of the loan?)
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