A man buys a house for $175,000. He makes a $75,000 down payment and amortizes the rest of the debt with semiannual payments over the next 10 years. The interest rate on the debt is 12%, compounded semiannually. find: (a) the size of each payment, (b) the total amount paid over the life of the loan, and (c) the total interest paid over the life of the loan.
(a) The size of each payment is $14,945.
(b) The total amount paid over the life of the loan is $179,637.
(c) The total interest paid over the life of the loan is $4,637.