math
posted by Katelyn on .
A $15,000 debt is to be amortized in 12 equal semiannual payments at 5.5% interest per halfyear on the unpaid balance. Construct an amortization table to determine the unpaid balance after two payments have been made. Round values in the table to the nearest cent.

The formula for calculating the payment amount is shown below.
A = P * ((r(1+r)^n)/(((1+r)^n)1)
Simple Amortization Calculation Formula
where
A = payment Amount per period
P = initial Principal (loan amount)
r = interest rate per period
n = total number of payments or periods
A = 15000 * ((0.055(1.055)^12)/(((1.055)^12)  1)
A = 15000 * ((0.055*1.9012)/.9012)
A = 1,740.44
Year 1, first payment: $1740.44 Interest paid = balance * 0.055 = $15000*.055 = $825
Principal paid = payment  interest = $ 1740.44  825 = 915.00
Balance = 15000  915 = 14085
Year 1, 2nd payment: $1740.44
Interest paid = balance * 0.055 = $14085*.055 = $774.68
Principal paid = payment  interest = $ 1740.44  774.68 = 965.76
Balance = 14085  965.76 = 13119
13119 is the unpaid balance after 2 payments. 
A debt of $5000 is to be amortized with 6 equal semiannual payments. If the interest rate is 9%, compounded semiannually, what is the size of each payment