Answer:
$2581.60
Explanation:
In order to find the amount owed after 4 years, we need to use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A is the amount owed after t years
P is the principal, or initial amount borrowed
r is the interest rate
n is the number of times the interest is compounded per year
t is the number of years
Plugging in the given values, we have:
A = $2000(1 + 0.07/2)^(2*4)
= $2000(1.035)^8
= $2000(1.2908)
= $2581.60
Therefore, the amount owed after 4 years would be $2581.60.