Accurate Accounting obtained a private loan of $25,000 for five years. No payments were required, but the loan accrued interest at the rate of 3% compounded monthly for the first 2½ years and then at 8.25% compounded semi-annually for the remainder of the term. What total amount was required to pay off the loan?

Compounded Semi-annually

Interest calculation method where interest is added to the principal sum of a deposit or loan every six months, leading to interest on interest.

Private Loan

A loan sourced from a private entity or individual, as opposed to a government or public lender.

Accrued Interest

Interest that has been incurred but not yet paid, typically relating to bonds or loans.