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sukhopar [10]
3 years ago
13

Daniella, owner of a local subway shop, loaned $50,000 to pete hall to help him open a subway franchise. Pete plans to repay dan

iella at the end of 8 years with 6% interest compounded semiannually. How much will daniella receive at the end of 8 years?.
SAT
1 answer:
Ksenya-84 [330]3 years ago
8 0

The total amount of money Daniella will receive after 8 years at interest rate compounded semiannually is $5,030,105

<h3>How to find compound interest</h3><h3 />
  • Principal = $50,000
  • Rate = 6%

= 0.06

  • Time = 8 years
  • Number of periods = 2 (semi annually)

A = P(1 + r/n)nt

where,

  • A = compound interest
  • P = principal
  • r = interest rate
  • n = number of periods
  • t = time (years)

Solve the equation for A

A = P(1 + r/n)^nt

A = 50,000.00(1 + 0.06/2)^(2×78)

A = 50,000.00(1 + 0.03)^156

A = $5,030,105.09

Approximately, $5,030,105

Learn more about compound interest:

brainly.com/question/2455673

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