Respuesta :
Answer:
$2253.98
Step-by-step explanation:
Jim received a $2000 loan from his bank. The loan accrues 3% interest every 3 months.
[tex]A=P(1+\frac{r}{n} )^{nt}[/tex]
P=2000
r= 3%=0.03 and t= 4 years
interest every 3 months so n= 4
[tex]A=2000(1+\frac{.03}{4} )^{4 \cdot 4}[/tex]
[tex]A=2000(1+\frac{.03}{4} )^{16}\\A=2000(1.0075)^{16}\\\\A=2253.98[/tex]
Compound interest is the addition of interest. The interest that is needed to be paid by Jim in the 4 years of tenure is $2253.98.
What is compound interest?
Compound interest is the addition of interest on the interest of the principal amount. It is given by the formula,
[tex]A = P(1+ \dfrac{r}{n})^{nt}[/tex]
We know that the Principal amount received by Jim is $2000, while the interest that Jim needs to pay is 3% quarterly, therefore, he needs to pay the interest 4 times a year. Thus, the value of n is 4.
Now, we know all the values therefore, substitute the values in the formula of compound interest,
[tex]A = P(1+ \dfrac{r}{n})^{nt}[/tex]
[tex]A = 2000(1+ \dfrac{3}{4})^{4 \times 4}\\\\A = \$2,253.98[/tex]
Hence, the interest that is needed to be paid by Jim in the 4 years of tenure is $2253.98.
Learn more about Compound Interest:
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