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You borrow $5,000 from the bank to pay tuition for your first year of university....

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Finance

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?

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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? Submit

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