SOLUTION: Keith borrowed $8000 at a rate of 7.5%, compounded semiannually. Assuming he makes no payments, how much will he owe after 7 years?

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Question 965024: Keith borrowed $8000 at a rate of 7.5%, compounded semiannually. Assuming he makes no payments, how much will he owe after 7 years?
Answer by addingup(3677) About Me  (Show Source):
You can put this solution on YOUR website!
Amount(1+rate/n periods)^n*time The periods are 2 in a year, so n=2
800(1+.075/2)^2*7= debt
800(1.674)= debt
1,339.44= debt