Micro Brewery borrows $300,000 to be repaid in equal installments over a period of three years. The loan payments are semiannual with the first payment due in six months, and interest is at 6%. What is the amount of each payment

$55,379.27

Explanation:

Amount of each payment = Principal / PVIFA

Principal = $300,000

PVIFA (r=6%/2=3%, n=3yrs*2= 6) = 5.41719

Amount of each payment = $300,000 / 5.41719

Amount of each payment = $55379.2649

Amount of each payment = $55,379.27

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