Question

Anne Katz, owner of Katz Sport Shop, loans $8,000 to Shelley Slater to help her open an art shop. Shelley plans to repay Anne at the end of 8 years with interest compounded semiannually at 8 percent. At the end of 8 years, Anne will receive:

Answer 1

A= P(1 + r/n) ^nt
=8000(1+0.08/2)^8x2
=8000(1.04)^16
=$14983.85