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2 votes
Walter took out a $6,000 loan for six years. He is being charged 6 percent interest, compounded annually. Calculate the total amount he will pay.

total amount = P (1 + i)t
A. $7657.69
B. $8040.57
C. $8511.12

User Aseychell
by
7.9k points

2 Answers

3 votes
The formula is
Total amount = P (1 + i)^t
Total amount ?
P the amount of the loan 6000
I interest rate 0.06
T time 6 years
Total amount=6,000×(1+0.06)^(6)
Total amount=8,511.12

So it's c

Hope it helps!
User Jignesh Kheni
by
8.6k points
6 votes

Answer

Find out the Calculate the total amount he will pay.

To prove

As given

Walter took out a $6,000 loan for six years.

He is being charged 6 percent interest, compounded annually.

Formula


Total\ amount = P (1 + i)^(t)

Where P is the principle, i is the interest in the decimal form, t is the time.

Here P = $6,000

t = 6 years

6% is written in the decimal form.


= (6)/(100)

= 0.06

Put in the formula


Total\ amount = 6000(1 + 0.06)^(6)


Total\ amount = 6000(1.06)^(6)

Total amount = $8511.12

Therefore the total amount be $8511.12 .

Option (C) is correct.

User Aneroid
by
8.2k points
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