Suppose that $2000 is loaned at a rate of 11%, compounded semiannually. Assuming that no payments are made, find the amount owed after 5 years.

Do not round any intermediate computations, and round your answer to the nearest cent.

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.