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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Answer:
$23 a hour
Step-by-step explanation:
Answer:
From the perspective of the 32-year-old male, the monetary values corresponding to surviving the year is -$194 and for not surving the year is $109 806.
Step-by-step explanation:
If the 32 year old survives the year it means he has to pay $194 towards the policy denoted by the negative sign. However if he does not survive the year it means he gets the death benefit - cost of the policy that is
$110 000-$194= $109 806.
2.5euros/1kg×?U.S$/?euro×1kg/?lb
and, 1 kg=2.20462 lb
2.5/1 * $1.256/.7965 E * 1KG/2.204 =3.14/178= 1.76.
