Peter borrowed $34,000 from a local bank at 5% compounded semi-annually to start a business. After 3 years, the interest rate on the debt changed to 6% compounded monthly.

a. What would be the accumulated amount of the debt in 3 years?

$39,429.58

$41,861.51

$38,467.88

$40,415.32

b. What would be the accumulated amount of the debt in 4 years?

$39,429.58

$41,861.51

$41,653.24

$42,070.82