Solve the Problem. -Hector Borrows $2,500 at a Rate of 9% Compounded Monthly

Multiple Choice

Solve the problem.
-Hector borrows $2,500 at a rate of 9% compounded monthly. Find how much Hector owes at the end of 4years. A = final amountP = $2,500 (the amount borrowed) r = 9% = 0.09 (the annual rate of interest) n = 12 (the number of times interest is compounded each year) t = 4 (the duration of the loan in years)

A) $3,578.51
B) $3,936.36
C) $120,900.00
D) $2,575.85