Carl is facing very difficult financial times and can only pay the interest on a $10,000 loan he has taken. The bank charges him a quarterly compound rate of 8%. What is the approximate interest he pays annually?	Answers
A) 1500 B) 1750 C) 2000 D) 3500 E) 2500
An easy way too attempt this is by approximation:   For the first quarter, he pays 8% of 10,000 which is $800.   So for the four quarters in the year, he will approximately play  800*4= 
<gadget id="calculator"> 800*4</gadget>
<output>3_200</output>
3200 over the entire year.   Because of compound interest it will be more than 3200. Approx. option D is correct.   Answer :3500
<result>D</result>
Carl is facing very difficult financial times and can only pay the interest on a $10,000 loan he has taken. The bank charges him a quarterly compound rate of 8%. What is the approximate interest he pays annually?