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.
#SPJ1
Answer:
Alternate interior angles theorem
Step-by-step explanation:
Alternate interior angles theorem
Answer:
The decimal number system in use today was first recorded in Indian mathematics.
Step-by-step explanation:
In the classical period of Indian mathematics (400 AD to 1200 AD), important contributions were made by scholars like Aryabhata, Brahmagupta, Bhaskara II, and Varāhamihira. The decimal number system in use today was first recorded in Indian mathematics.
Easy Engagement and Value
Neither jajsjxkkskxldodkkdosodjdjdjd
