Total amount = P (1 + i)t Ryan has an eight–year loan for $6,000. He is being charged an interest rate of 5 percent, compounded annually. Calculate the total amount that he will…

Question

asked Oct 14, 2020 109k views

1 Answer

Janiek Buysrogge · Answer 1 · 2020-10-18T13:54:03+0000

Answer: Option 'c' is correct.

Explanation:

Since we have given that

Total amount =
P(1+i)^t

Number of years = 8

Loan amount = $ 6000

Rate of interest = 5%

So, Total amount is given by

$6000(1+0.05)^8\\\\=6000(1.05)^8\\\\=\$8864.73$

Hence, Option 'c' is correct.