Answer:
98,357.57
Step-by-step explanation:
The formula to find the total amount obtained using compound interest is given as:
A = P(1 + r/n)^nt
Where:
A = Amount returned or payed back.
P = Amount borrowed = 50,000
R = Interest rate = 14% = 0.14
T = Time = 5 years
n = number of time compounded = semi annually = 2
Hence,
A = 50,000(1 + 0.14/2)^2 ×5
A = 50,000(1 +0.07)^10
A = 98,357.57
The amount he is paying back to his friend is 98,357.57.
