A loan is made for 2,500 at an interest rate of 8% compounded semiannually for 3 years. what is the future value of this loan after the 3 year period
Assuming the question means you repay the loan in full in three years, pay no interest in the interim, and interest accrual begins in six months, here's what I think:
8% semi-annually for 3 years = 4% every six months for 6 six-month periods. So we could solve:
$2,500 * (1.04)^6 = $3,163.
- Steve J