Arestaurant needs $540,000 in 6 years for an addition. find the total interest earned if payments are made at the end of each semiannual period with interest at 8% compounded semiannually. a. $108,756 b. $73,612.80 c. $343,354 d. $35,937

A

Step-by-step explanation:

A=pmt [((1+r/n)^(nt)-1)÷(r/n)]

A future value 540000

Pmt semiannual payment ?

R interest rate 0.08

N semiannual 2

T time 6 years

Pmt =540,000÷(((1+0.08÷2)^(2×6)−1)÷(0.08÷2))=35,938.17

Now find total payments

35,938.17×2×6=431,258.04

interest earnd

540,000−431,258.04

=108,741.96

Which approximatly equals

$108,756

2 over 5

step-by-step explanation:

the 2: 3 ratio is the length of the ac segment to the cb segment total length. this implies that the ratio between segment ac length and segment ab length is 2: 5. point c is 2/5 from a to b, so the required fraction is 2/5.