Lorna Ray, owner of a Starbucks franchise, loaned $40,000 to Lee Reese to help him open a new flower shop online. Lee plans to repay Lorna at the end of 5 years with 4% interest compounded semiannually. How much will Lorna receive at the end of 5 years? (Round your answer to the nearest cent.)

Lorna Ray, owner of a Starbucks franchise, loaned $40,000 to Lee Reese to help him open a new flower shop online. Lee plans to repay Lorna at the end of 5 years with 4% interest compounded semiannually. How much will Lorna receive at the end of 5 years? (Round your answer to the nearest cent.)

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter27: Time Value Of Money (compound)

Section: Chapter Questions

Problem 6E

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