carl is facing very difficult financial times and can only pay the interest on a $ 30,000 loan he has taken . the bank charges him a quarterly compound rate of 10 % . what is the approximate interest he pays annually ?
"usually , you are given the annual rate of interest and it is mentioned that it is annual rate . the bank charges him a quarterly compounded annual rate of 40 % . here you find per quarter rate as ( 40 / 4 ) % = 10 % i have actually never seen a question with quarter rate given but since this question did not mentionannual rate of interestand since the options did not make sense with 5 % annual rate of interest , it is apparent that the intent was a 10 % quarterly rate . so the bank charges 10 % every quarter and compounds it in the next quarter . had it been a simple quarterly rate , we would have just found 4 * 10 % of 30,000 = $ 12000 as our answer . but since , the interest is compounded , it will be a bit more than $ 12000 . option ( e ) looks correct ."
subtract(multiply(multiply(const_100, const_100), power(add(const_1, divide(10, const_100)), const_4)), multiply(const_100, const_100))