Heather borrowed exist8000 at a rate of 85 compounded semian

Heather borrowed exist8000 at a rate of 8.5%, compounded semiannually. Assuming she makes no payments, how much will she owe after 6 years? Do not round any intermediate computations, and round your answer to the nearest cent.

Solution

amount, A= P(1+r/n)nt

here P = 8000, r = 0.085, n = 2 (semi annually) , t = 6

A = 8000(1+0.085/2)2*6 = 13182.65

 Heather borrowed exist8000 at a rate of 8.5%, compounded semiannually. Assuming she makes no payments, how much will she owe after 6 years? Do not round any in

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