How do you do this kind of plroblem?
What is the total balance due on a $20000 loan at 5% for 6years if it is compounded semi-annually?
(2x per year)
Pt = Po(1 + r)n.
r = 5%/yr * 0.5yr = 2.5% = 0.025 = semi-annual rate expressed as a decimal.
n=2 comp/yr * 6yrs = 12 comp. periods.
Pt = 20000(1.025)^12,
Pt = 20000 * 1.3449 = $26,897.78