The loaned at a rate compound semiannually

Question

Suppose that $2000 is loaned at a rate of 17.5%, compounded semiannually. Assuming that no payments are made, find the amount owed after 3 years.

Do not round any intermediate computations, and round your answer to the nearest cent.

Answer 1

2,000 at

17.5%

for

3 years

compounded twice annually

n=2, t=3, r=.175, P=2,000

plug into this formula and solve for A

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

A=2,000(1.0875)^6 = $3,308.31