Answer:
$10511.075
Step-by-step explanation:
Given :
Interest rate, r =. 1.25% = 0.0125 compounded semianually
Principal = 10000
Number of years, t = 4 years
Compound interest :
A = P(1 + r/n)^nt
A = final amount ; n = number of compounding times per period
n = 2 (quarterly)
A = 10000(1 + 0.0125/2)^2*4
A = 10000(1 + 0.00625)^8
A = 10000(1.00625)^8
A = 10000 * 1.051107529
A = 10511.075
Final. Amount to. Be repaid = $8515.13
