Answer:
$16,534.95
Step-by-step explanation:
To compute interest on loans, we use the compounded interest equation. We use the equation [tex]A=P(1+\frac{r}{n})^{nt}[/tex] where
- P is the principle or starting value
- A is the total amount after interest and a period of time
- r is the rate at which interest gathers as a decimal
- n is the number of times compounded in a year.
For this problem, we know P=$8000, r=19%=0.19, t=4 years and n=2. We substitute into the formula and simplify to find the total amount A.
[tex]A=P(1+\frac{r}{n})^{nt}\\A=8000(1+\frac{0.19}{2})^{2(4)}\\A=8000(1+0.095)^{8}\\A=16,534.95[/tex]
