Answer:
[tex](D)\$2919.25[/tex]
Step-by-step explanation:
For a Principal P loaned at an annual rate, r% for a period of n years compounded k times a year,
[tex]Amount \: at \: Compound \: Interest= P(1+\frac{r}{k} )^{nk}[/tex]
Mr Harley's Loan, P=$2800
The Annual Interest Rate,r =16.8%=0.168
Since the interest is compounded monthly, the period, k=12
Monthly Interest Rate=0.168/12
However, since we are required to calculate how much Mr Harley will owe after three months, our time, nk=3 Months.
Therefore:
[tex]\text{Amount owed by Mr Harley after 3 Months}= 2800(1+\frac{0.168}{12} )^{3}\\=\$2919.25[/tex]
