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The interest if it is computed using simple interest will be $720 dollars.
The interest if it is compounded annually will be $809.86 dollars.
The interest if it is compounded semi-annually will be $837.04 dollars.
The interest if it is compounded quarterly will be $851.52 dollars.
The interest rate means the number borrower charges a borrower and is a percentage of the principal—the number loaned. The interest rate on a loan is kind of noted on an annual basis called as the annual percentage rate (APR).
To determine the interest, it can be calculated by this formula:
2000 x 3 x 12/100 = 720 dollars.
When interest is compounded annually, the interest will be:
2000 (1.12)³ - 2000 = $809.86
If the Interest is compounded semiannually
2000(1.06)⁶ - 2000= $837.04
if it is quarterly compounded, the interest will be:
2000(1.03) x 2 - 2000 = $851.52
Learn more about rate of interest at https://brainly.com/question/13324776
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