Why the loan requires no payments in the first year


A 5-year car loan for $50,000 with equal semi-annual payments. The loan requires no payments in the first year, i.e., the first payment is in 18 months, but interest continues to accrue during this period. The last payment is in 5 years. If the APR on the loan is 8% (semi-annual compounding), what are the payments?

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Finance Basics: Why the loan requires no payments in the first year
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