# SOLUTION: Suppose that \$2000 is loaned at a rate of 7.5% , compounded semiannually. Assuming that no payments are made, find the amount owed after 7 years. Do not round any intermedia

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 Click here to see ALL problems on Money Word Problems Question 401190: Suppose that \$2000 is loaned at a rate of 7.5% , compounded semiannually. Assuming that no payments are made, find the amount owed after 7 years. Do not round any intermediate computations, and round your answer to the nearest cent.Answer by lwsshak3(6770)   (Show Source): You can put this solution on YOUR website!Suppose that \$2000 is loaned at a rate of 7.5% , compounded semiannually. Assuming that no payments are made, find the amount owed after 7 years. This problem is solved by using the compound interest formula, A=P(1+interest/period)^nbr of periods. A=amount accummulated P=amount loaned=\$2000 Interest per period=.075/2=.0375 Number of periods = 7*2=14 A=2000(1+.0375)^14 =2000(1.0375)^14 =\$3348.60 ans: The amount owed after 7 years = \$3348.60