If $4000 is borrowed at a rate of 16% interestper year, compounded quarterly, find theamount due at the end of(a) 4 years(b) 6 years(c) 8 years

Answer: (a) $7492(b) $10,253(c) $14,032Step-by-step explanation:As we know, the final Amount can be calculated with the formula for compound interest,A = P(1 + \frac{r}{n} )^{nt}where,A = Final Amount dueP = Initial principal amount borrowedr = rate of interest in decimaln = number of times applied per time periodt = total time periodNow, according to the given data,(a) in 4 years ;-⇒ [tex]A = 4000(1 + \frac{0.16}{4} )^{4(4)}[/tex]⇒ [tex]A = 7492[/tex](b) in 6 years ;-⇒ [tex]A = 4000(1 + \frac{0.16}{4} )^{4(6)}[/tex]⇒ [tex]A = 10,253[/tex](c) in 8 years ;-⇒ [tex]A = 4000(1 + \frac{0.16}{4} )^{4(8)}[/tex]⇒ [tex]A = 14,032[/tex]