Question

Alfred paid $36,187.89 for his new car. If he took out a loan and was given a 3.15 % interest rate compounded semi-annually for ó years, how much did he borrow? Round your answer to the nearest whole number.​

Answer 1

`A = P(1+(r)/(n))^(nt)\\\\`

A = 36187.89

r= 3.15% = 0.0315

n = 2

t = 6

`36187.89= P(1 + (0.0315)/(2) )^{2*6)`

`36187.89 = P( 1+0.01575)^(12)\\\\P = (36187.89)/(1.01575^(12)) = 30000.0024`

Answer $30,000