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21 September, 09:59

Suppose that $2000 is loaned at a rate of 15.5%, compounded semiannually. Assuming that no payments are made, find the amount owed after 9 years. Do not round any intermediate computations, and round your answer to the nearest cent

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  1. 21 September, 10:21
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    The formula is

    A=p (1+r/k) ^kn

    A future value?

    P present value 2000

    R interest rate 0.155

    K compounded semiannual 2

    N time 9 years

    A=2,000 * (1+0.155:2) ^ (2*9)

    A=7,665.51
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