Question

Mark got a loan of $77000 which he will complete repayment in

3 years. If the loan is compounded Sem- Annually at 7% per annum, what amount will he repay? (work out?)​

Answer 1

A = $94652.66

Explanation:

Use the compound amount formula A = P(1 + r/n)^(nt), where r is the annual interest rate and n is the number of compounding periods per year.

Here, A = ($77000)(1 + 0.07/2)^(2*3), or

A = $77000(1.035)^6, or

A = $77000(1.229), or

A = $94652.66