The borrower owes $14,760.82 at the end of 8 years
What is compounding interest?
Compounding interest means that earlier interest would earn more interest in the future alongside the loan principal.
Note that in this case the loan continues to accumulate interest because there no repayments, in other words, the loan balance after 8 years, which comprises of the principal and interest for 8 years can be computed using the future value formula of a single cash flow(the single cash flow is the principal) as shown thus:
FV=PV*(1+r/n)^(n*t)
FV=loan balance after 8 years=unknown
PV=loan amount=$5,000
r=annual interest=14%
n=number of times in a year that interest is compounded=2(twice a year)
t=loan period=8 years
FV=$5000*(1+14%/2)^(2*8)
FV=$5000*(1.07)^16
FV=$5000*2.95216374856541
FV=loan balance after 8 years=$14,760.82
Find out more about semiannual compounding on:brainly.com/question/7219541.
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Y=3x/4-6
doing this is thinking of it in a matter of geometric figure and how you would plot it on a graph and this is the only way it would look write.
Answer:
%80
Step-by-step explanation:
Answer:
C
Step-by-step explanation:
We are asked to determine if the number sets 1857300 and 1857800 are the same number sets. To answer this, we need to recall and define that number sets are a collection of distinct objects such as elements and numbers. The answer to this question is that these two sets are NOT the same, the first one contains "3" while the second one contains "8".
