Given:
Principal = 3,500
term = 5 years
interest rate = 12%
compounded semi-annually
A = P(1 + r/n)^nt
A = 3,500 (1 + 12%/2)²ˣ⁵
A = 3,500 (1 + 0.06)¹⁰
A = 3,500 (1.06)¹⁰
A = 3,500 (1.79)
A = 6,265
5 years * 2 = 10 semi-annual payments
6,265 / 10 = 626.50 amortization payment.
