• The debt amount is $3,000.
,• The interest rate is 10% per year.
,• The period of time is 2 years.
,• The compound is monthly.
The interest compound formula is
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]Where P = 3,000, r = 0.10, n = 4, and t = 2.
Notice that n = 4 because the interest is quarterly compound.
Let's replace the values and solve them.
[tex]\begin{gathered} A=3,000(1+\frac{0.10}{4})^{4\cdot2} \\ A=3,000(1+0.025)^8 \\ A=3,000(1.025)^8 \\ A=3,000(1.22)\approx3655.21 \end{gathered}[/tex]