Metro Construction Received $60,000 in Vendor Financing at 10

Metro Construction received $60,000 in vendor financing at 10.5% compounded semi-annually for the purchase of a loader. The contract requires semi-annual payments of $10,000 until the debt is paid off. Suppose that the loan permits an additional prepayment of principal on any scheduled payment date. Prepare another amortization schedule that reflects a prepayment of $5,000 with the third scheduled payment. How much interest is saved as a result of the prepayment?

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