Question

Susan borrowed $25,000 from a bank for one year at the rate of 10.5% per annum. Compute the amount she must pay to the bank to clear her loan amount; interest is compounded half-yearly.

Answer 1

$29,761.90

Explanation:

25,000 ÷ 10.5 = 2,380.95

2,380.95 X 2 = 4,761.90

4,761.90 + 25,000 = $29,761.90