Jake accumulated $8,000 in credit card debt. If the interest rate is 20% per year and he does not make any payments for 3 years, how much will he owe on this debt in 3 years for quarterly compounding? Round your answer to two decimal places.

14366.85

Step-by-step explanation:

Identify the values of each variable in the formulas. Remember to express the percent as a decimal.

APrt=?=$8,000=0.2=3

For quarterly compounding, n=4. There are 4 quarters in a year.

A=P(1+rn)nt

Substitute the values in the formula.

A=8,000(1+0.24)4⋅3

Compute the amount.

A=$14,366.85