Using the calculator below, substitute the values to calculate the interest amount on a the loan using the compound interest formula. Principal: $4,000 time: 10 years rate: 7% number of compounding periods: 4 What is the amount of the compound interest? (interest only)a. 2,800b. 4,757c. 4,006d. 59,897​

answer : c) 4,006A = $8,006.39A = P + I whereP (principal) = $4,000.00I (interest) = $4,006.39explanation:First, convert R as a percent to r as a decimalr = R/100r = 7/100r = 0.07 rate per year,Then solve the equation for AA = P(1 + r/n)ntA = 4,000.00(1 + 0.07/4)(4)(10) A = 4,000.00(1 + 0.0175)(40) A = $8,006.39 Summary:The total amount accrued, principal plus interest, with compound interest on a principal of $4,000.00 at a rate of 7% per year compounded 4 times per year over 10 years is $8,006.39.