Asked by Daniel Carrera Chavarria on May 09, 2024
Verified
Tracy Roberts loaned $3,600 to her sister Felicity, who just had a baby. Tracy charged Felicity interest at 6% compounded semiannually. Compute total payment that Tracy will receive from her sister if the loan is for 3 years. (Use Tables 16-1A&B or a calculator.)
Compounded Semiannually
Refers to the process where interest is calculated and added to the principal amount of an investment or loan twice a year.
Total Payment
The sum amount paid over the duration of a loan or installment plan, including both the principal amount and the interest.
- Apprehend the principle of compound interest and its computational method.
- Enhance your capability to apply financial tables and calculators for figuring out future values and compound interest.
- Understand the application of compound interest in savings and loan scenarios.
Verified Answer
CE
Carlos ErnestoMay 15, 2024
Final Answer :
0.06 ¸ 2 = 0.03; 2 ´ 3 = 6;
$3,600 ´ 1.19405 = $4,298.58 total paid
$3,600 ´ 1.19405 = $4,298.58 total paid
Learning Objectives
- Apprehend the principle of compound interest and its computational method.
- Enhance your capability to apply financial tables and calculators for figuring out future values and compound interest.
- Understand the application of compound interest in savings and loan scenarios.
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