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

Answer:

She owe $37736.96 after 9 years .

Step-by-step 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 : $A= P(1+\frac{r}{n})^{nt}$

Substitute the values in the formula :

$A= 8000(1+\frac{0.18}{2})^{2 \times 9}$

A= 37736.96

Hence She owe $37736.96 after 9 years .