Show formulas and calculations You borrow $5,000 from the bank to pay tuition for your first year of university. The ban

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Show formulas and calculations
You borrow $5,000 from the bank to pay tuition for your first year of university.
The bank charges 6% per annum, compounded semi-annually.
a) 4 years later, how much will you have to repay as a lump sum?
check the answer
PART 2 - Compound Interest on a lump sum 14 QUESTION 1 - Show formulas and calculations You borrow $5,000 from the bank to pay tuition for your first year of university. The bank charges 6% per annum, compounded semi- annually. a) 4 years later, how much will you have to repay as a lump sum? # of period = 4.2=8 semi annual rate = 3% FV = (1+rate)^periode future Value = 5000(1+0.03) = 5000-1.26677=6333.85 lump sum=6333.85 b) How much of that amount is interest? Interest=6333.85-5000-1333.85 Edit my response