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 6%. What is the approximate interest he pays annually?  Answers:
A) $1200
B) $2000
C) $2150
D) $2500
E) $12000
An easy way too attempt this is by approximation:   For the first quarter, he pays 6% of 10,000 which is $600.   So for the four quarters in the year, he will approximately play  600*4= 
<gadget id="calculator"> 600*4</gadget>
<output>2_400</output>
2400 over the entire year.   The compound interest will be more than 2400. All other options are not right except D.   Answer : $2500
<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 6%. What is the approximate interest he pays annually?