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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
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?
b) How much of that amount is interest?
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? b) How much of that amount is interest? SubmitStep by Step Solution
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