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 7%. What is the approximate interest he pays annually?
Choose the correct choice from the following choices.
A) 1000 B) 1500 C) 3000 D) 2500 E) 2400
An easy way too attempt this is by approximation:   For the first quarter, he pays 7% of 10,000 which is $700.   So for the four quarters in the year, he will approximately play  700*4= 
<gadget id="calculator"> 700*4</gadget>
<output>2_800</output>
2800 over the entire year.   Because of compound interest it will be more than 2800. Approx. option C is correct.   Answer : 3000
<result>C</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 7%. What is the approximate interest he pays annually?