To ensure that funds are available to repay the principal at maturity, a borrower deposits $2000 each year for three years. If interest is 6% compounded quarterly, how much will the borrower have on deposit four years after the first deposit was made?

$2,391.20

Step-by-step explanation:

A= P (1+r/n)^nt

Where:

A = is the amount of money accumulated after n years, including interest.

P = is the principal (the initial amount you borrow or deposit)

r = is the annual rate of interest (percentage)

t = is the number of years the amount is deposited or borrowed for.

n = number of times interest is compounded per year

A= $2,000 (1+0.06/4)^4*3

 =  $2,000 (1+0.015)^12

=  $2,000 (1.015)^12

=  $2,000 (1.1956)

= $2,391.20

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