Results 1 to 2 of 2

Math Help - interest rate problem

  1. #1
    Newbie
    Joined
    Nov 2008
    Posts
    14

    interest rate problem

    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
    Follow Math Help Forum on Facebook and Google+

  2. #2
    Junior Member
    Joined
    Nov 2008
    Posts
    44

    interest rate problem

    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
    Follow Math Help Forum on Facebook and Google+

Similar Math Help Forum Discussions

  1. interest rate problem
    Posted in the Algebra Forum
    Replies: 2
    Last Post: April 7th 2011, 07:44 AM
  2. Interest Rate Problem
    Posted in the Calculus Forum
    Replies: 0
    Last Post: November 2nd 2009, 11:58 AM
  3. Interest Rate problem help!!!!
    Posted in the Math Topics Forum
    Replies: 1
    Last Post: November 23rd 2008, 08:35 PM
  4. [SOLVED] Problem involving interest rate?
    Posted in the Algebra Forum
    Replies: 0
    Last Post: February 17th 2008, 02:58 PM
  5. Difficult interest rate problem
    Posted in the Calculus Forum
    Replies: 4
    Last Post: May 27th 2007, 04:05 PM

Search Tags


/mathhelpforum @mathhelpforum