Question

Suppose that $2000 is loaned at a rate of 16.5%, compounded semiannually. Assuming that no payments are made, find the amount owed after 7 years. Do not round any intermediate computations, and round your answer to the nearest cent.

Answer 1

$6298.29

Explanation:

2000 x (1+(.165/12))^84, the 84 being the number of months in 7 years

=$6298.2927345

=$6298.29

How many months in 7 years = 84 months