Answer:
98,700
Step-by-step explanation:
Principle (P)= 35,000
Rate (r)=6% (change first into its decimal form) just divide 6% by 100 to get 0.06
n will be standing for compounded semi-annually. If you do not know how semi-annually works then here's an example:
You will be paying the loan over three years and there will be two compounding periods per year, except for the first year will have one. This means that the total number of compounding periods will be five.
So in our case, 12 years semi-annually is 23
After that, we only need to fill in the formula:
P[(1+r)^n-1]
35,000[(1+0.06)^23-1]
( Note: If you might get confused on how this one works ((1+0.06)^23 it is actually simple. After, you added 1+0.06 and become 1.06 this (^23) will be used to multiply the number (1.06) by itself 23 times. It will go like 1.06x1.06x1.06x1.06 up to the twenty-third times and get the result of 3.820))
=35,000[3.820-1]
=35,000[2.820]
=98,700 your final answer
