SOLUTION: A FARMER BORROWED 50,000 PESOS FROM THE BANK IN ORDER TO BUY FARM MACHINERIES. WHAT IS THE INTEREST IF THE LOAN IS PAYABLE IN 5 YEARS IN THE RATE OF 10%COMPOUNDED SEMI- ANNUALLY?

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Question 476539: A FARMER BORROWED 50,000 PESOS FROM THE BANK IN ORDER TO BUY FARM MACHINERIES. WHAT IS THE INTEREST IF THE LOAN IS PAYABLE IN 5 YEARS IN THE RATE OF 10%COMPOUNDED SEMI- ANNUALLY?
Answer by robertb(5830) About Me  (Show Source):
You can put this solution on YOUR website!
The balance is given by the formula B+=+P%281%2Br%2Fn%29%5E%28nt%29
==> B+=+50000%281%2B0.10%2F2%29%5E%282%2A5%29+=+50000%2A1.05%5E10+=+81444.73
==> the interest is 81,444.73 - 50,000 = 31,444.73