Answer:
The final value owed will be $3416.29.
Step-by-step explanation:
Since this is a compound interest problem we should use the apropriate formula given bellow:
M = C*(1 + r/n)^(n*t)
Where M is the final amount, C is the initial amount, r is the interest rate, t is the total time and n is the rate at which it is compounded. Since it's semiannually the value of n is 2 and we can use the formula to find the desired value.
M = 2000*(1 + 0.11/2)^(2*5)
M = 2000*(2/2 + 0.11/2)^(10)
M = 2000*(2.11/2)^(10)
M = 3416.29
The final value owed will be $3416.29.
