Answer :
Final answer:
To calculate the amount Jeff has to pay at the end of the loan term, use the formula for compound interest: A = P(1+r/n)^(nt). Plug in the values and evaluate to find the answer.
Explanation:
To determine the amount Jeff has to pay at the end of the loan term, we can use the formula for compound interest: A = P(1+r/n)^(nt), where A is the total amount, P is the principal (initial amount borrowed), r is the interest rate (expressed as a decimal), n is the number of times interest is compounded per year, and t is the number of years. In this case, Jeff borrowed $20,000, the interest rate is 8% (or 0.08), and interest is compounded quarterly (4 times per year) for 1 year.
Plugging in the values into the formula, we get: A = 20000(1+0.08/4)^(4*1). Evaluating this, we find that Jeff has to pay approximately $21,657.60 at the end of the loan term.
Learn more about compound interest here:
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