Answer:
Jamie will owe $ 41,95,725.83 ( approx ),
Accumulated interest is $ 36,95,725.83
Step-by-step explanation:
Since, the amount formula in compound interest is,
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]
Where, P is the principal amount,
r is the annual rate of interest,
n is the compounding periods in a year,
t is the time in years,
Here, P = $ 500,000,
r = 8.6 %=0.086,
n = 4,
t = 25 years,
By substituting the values,
[tex]A=500000(1+\frac{0.086}{4})^{100}[/tex]
[tex]=500000(1+0.0215)^{100}[/tex]
[tex]=500000(1.0215)^{100}[/tex]
[tex]=4195725.82746[/tex]
[tex]\approx 4195725.83[/tex]
Also, the accumulated interest = A-P = 4195725.83 - 500000 = $ 3695725.83
