SOLUTION: Kyle Wong loans $12,000 to his brother-in-law. He will be repaid at the end of 9 years with interest at 8% compounded semiannually. Find out how much will be repaid.

Algebra ->  Numeric Fractions Calculators, Lesson and Practice -> SOLUTION: Kyle Wong loans $12,000 to his brother-in-law. He will be repaid at the end of 9 years with interest at 8% compounded semiannually. Find out how much will be repaid.       Log On


   

Question 961374: Kyle Wong loans $12,000 to his brother-in-law. He will be repaid at the end of 9 years with interest at 8% compounded semiannually. Find out how much will be repaid.
Answer by mananth(16946) About Me  (Show Source):
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Kyle Wong loans $12,000 to his brother-in-law. He will be repaid at the end of 9 years with interest at 8% compounded semiannually. Find out how much will be repaid.
Compound interest formula
A= P(1+r/n)nt
A = Amount
P is the principal $12000
r= rate in decimal 8%= 0.08
n is the number of times that interest is compounded per unit 2 timesper year
t is the time the money is invested for, in years=9 years
A= 12000(1+0.08/2)^2*9

A = 12000*1.04^18= $24309.80
Amount to be repaid = $24309.80