Question 1119435: Suppose that $2000 is loaned at a rate of 11%, compounded semiannually. Assuming that no payments are made, find the amount owed after 5 years.
Do not round any intermediate computations, and round your answer to the nearest cent.
(thank you for your help)
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! Suppose that $2000 is loaned at a rate of 11%, compounded semiannually. Assuming that no payments are made, find the amount owed after 5 years.
Do not round any intermediate computations, and round your answer to the nearest cent.
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A(t) = P(1+(r/n))^(n*t)
A(5) = 2000(1+(0.11/2))*(2*5)
A(5) = 2000(1.055)^10
A(5) = $3416.29
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Cheers,
Stan H.
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