Answered

Welcome to Westonci.ca, where your questions are met with accurate answers from a community of experts and enthusiasts. Discover in-depth answers to your questions from a wide network of professionals on our user-friendly Q&A platform. Our platform offers a seamless experience for finding reliable answers from a network of knowledgeable professionals.

Daniella, owner of a local subway shop, loaned $50,000 to pete hall to help him open a subway franchise. Pete plans to repay daniella at the end of 8 years with 6% interest compounded semiannually. How much will daniella receive at the end of 8 years?.

Sagot :

adioabiola

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

How to find compound interest

  • 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:

https://brainly.com/question/2455673

Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. Thanks for stopping by. We strive to provide the best answers for all your questions. See you again soon. Find reliable answers at Westonci.ca. Visit us again for the latest updates and expert advice.