Answer
$\$ 3679.09$
Work Step by Step
(see p. 870)
If a loan $A_{p}$ is to be repaid in
$n$ regular equal payments with
interest rate $i$ per time period,
then the size $R$ of each payment is given by
$R=\displaystyle \frac{iA_{p}}{1-(1+i)^{-n}}$
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Interpretation of the problem:
The man has loaned money TO the company at the said rate.,
and it is repaying him in 20 semiannual payments of R dollars.
Given
$A_{p}=50,000$,
... semiannualy = twice per year:
$n=10(2)=20$,
$i=\displaystyle \frac{0.08}{2}=0.04$.
$R =\displaystyle \frac{(0.04)(50,000)}{1-(1.04)^{-20}}=\$ 3679.09$.
$\$ 3679.09$
