13. justin generously lends $500,000 to his friend, jamie. however, being a maleficent businessman, he charges jamie interest at 8.6 % per annum compounded quarterly. how much will jamie owe justin after 25 years? what is the accumulated interest? [3 marks]

Jamie will owe $ 41,95,725.83 ( approx ),

Accumulated interest is $ 36,95,725.83

Step-by-step explanation:

Since, the amount formula in compound interest is,

Where, P is the principal amount,

r is the annual rate of interest,

n is the compounding periods in a year,

t is the time in years,

Here, P =  $ 500,000,

r = 8.6 %=0.086,

n = 4,

t = 25 years,

By substituting the values,

Also, the accumulated interest = A-P = 4195725.83 - 500000 = $ 3695725.83

b

step-by-step explanation: