Jared borrowed some money at 6% per year, compounded quarterly. After 2 years, he paid $2,816.23 to pay off the loan. How much did Jared borrow?

Question

Jared borrowed some money

Answer 1

2 years is 8 quarter periods. The quarterly rate is 6/4=1.5%.

6% for 8 quarters is (1.015)⁸=1.1265 approx.

So the original amount borrowed was 2816.23/1.1265=$2500.