Question

Debra borrowed $8000 at a rate of 18% compounded semiannually. Assuming she makes no payment, how much will she owe after 9 years ?

Answer 1

She owe $37736.96 after 9 years .

Explanation:

Debra borrowed $8000 at a rate of 18% compounded semiannually

We are supposed to find how much will she owe after 9 years

Principal = 8000

Rate of interest = 18% =0.18

No. of compounds per year = 2

Time = 9 years

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

Substitute the values in the formula :

`A= 8000(1+(0.18)/(2))^(2 * 9)`

A= 37736.96

Hence She owe $37736.96 after 9 years .