ANSWER
[tex]\$3,173.75[/tex]EXPLANATION
We want to find the amount owed after 3 years.
To find this, we apply the formula for compound interest:
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]where P = principal = $2000
r = rate = 16% = 0.16
n = number of times it is compounded per year = 2
t = number of years = 3
Therefore, we have that:
[tex]\begin{gathered} A=2000(1+\frac{0.16}{2})^{(2\cdot3)}_{} \\ A=2000(1+0.08)^6 \\ A=2000(1.08)^6 \\ A=\$3,173.75 \end{gathered}[/tex]That is the amount owed after 3 years (to the nearest cent)
