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nlexa [21]
3 years ago
13

Jim received a $2000 loan from his bank. The loan accrues 3% interest every 3 months. How much will Jim owe the bank after 4 yea

rs? Round to the nearest cent
Mathematics
1 answer:
pashok25 [27]3 years ago
4 0

Answer:

$2253.98

Step-by-step explanation:

Jim received a $2000 loan from his bank. The loan accrues 3% interest every 3 months.

A=P(1+\frac{r}{n} )^{nt}

P=2000

r= 3%=0.03  and t= 4 years

interest every 3 months so n= 4

A=2000(1+\frac{.03}{4} )^{4 \cdot 4}

A=2000(1+\frac{.03}{4} )^{16}\\A=2000(1.0075)^{16}\\\\A=2253.98

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