Question

Pleaase someone help me !

How much would you have to repay on a credit card debt of 3500$ after 2-years if the interest rate is 19.5% compounded half-yearly .​

Answer 1

$ 4,865

Explanation:

First find the simple intere

Answer 2

P = A (1 + i)^n where P is the payment, A the original amount and i the interest rate for the payment period.

Assuming .195 is the annual interest rate then

i = .195 / 2 = .0975 the rate that will be compounded every 6 mos.

P = 3500 * (1 + .0975)^4 = $5078