SOLUTION: Jean Rich, owner of a local Dunkin' Donuts shop, loaned $14,000 to Mel Lyon to help him open an Internet business. Mel plans to repay Jean at the end of 6 years with 6% interest co

Question 961377: Jean Rich, owner of a local Dunkin' Donuts shop, loaned $14,000 to Mel Lyon to help him open an Internet business. Mel plans to repay Jean at the end of 6 years with 6% interest compounded semiannually. How much will Jean receive at the end of 6 years?
Answer by mananth(16946) (Show Source): You can put this solution on YOUR website!
Using the formula A = P(1 + r/n)^nt

r = 0.06 rate per year,
Then solve the equation for A
A = 14,000.00(1 + 0.06/2)^(2)(6)
A = 14,000.00(1 + 0.03)(12)
A = $19,960.65

Jean will receive $19,960.65 at the end of 6 years
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