Question

$1000 loan, 6% interest rate, for 11/2yr, compound semi-annually, how much interest did pay?

Answer 1

\[I = P(1 + \frac rn)^{nt}\]

Answer 2

P=1000(1+0.03)^3
P=1092.727
interest equals P-1000= $92.727

Answer 3

\[1000*(1+[0.06^{11/2}\])-1000\

Answer 4

Thank you all for your help!!

Answer 5

Could you tell me why wee would add 1 + 0.03?

Answer 6

the 0.03 is the rate of the half year compounded rate adn one just is just the repeat of the 1000 dollars

Answer 7

o im wrong
for semi-annually
interest rate is usually for a year

Answer 8

That's alright AndrewNJ, thanks for your help anyway

Answer 9

Thank you Calcmathlete

Answer 10

Thank you aceace

Answer 11

You're welcome :)