Anne Katz, the owner of Katz Sport Shop, lends $8,000 to Shelley Slater to help her open an art shop. Shelley plans to repay Ann
e at the end of eight years with interest compounded semiannually at 8%. At the end of eight years, Anne will receive (use the tables in the handbook): $14,984
$16,857
$16,587
$14,484
None of these
There is $8000 that need to be paid back in 8 years semiannually (twice a year) so 16 times each time it is 8% which is $640 so multiply 16 by 640 and you will get $10240 which should be including the $8000 and interest.<span />
