Suppose the interest rate on your credit card is 16% compounded quarterly and you currently owe $2000 on it. If you don’t make any payments for 3 years, how much will you owe in 3 years?
Question 11 options:
31523162 

31623172 

31723182 

31823192 

None of the above 
We can solve it by using compound interest formula:
Where,
A = Amount you owe after 3 years
P = Amount you owe today
i = rate of interest
n = number of years
a = number of compounding in a year
When compounding is quarterly, there will be 4 compoundings in a year, which means a = 4.
Now, Substituting the values, we get:
Therefore, you will owe $3,202 at the end of 3 years.
From the options, we can see that none of the given choices matches the correct answer. So "None of the above" is the correct option.
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