Question

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

Answer 1

Answer: $8511.11

Explanation:

Given: The Principle amount taken by Walter as loan (P)= $6,000

The rate of interest charged (i)= 6%=0.06

Time (t)= 6 years

To calculate the total amount he will pay, we use the given formula:-

`\text{Total amount }= P (1 + i)^t`

Thus the total amount he will pay after 6 years is given by :-

`\text{Total amount }= 6000 (1 + 0.06)^6\\\\\Rightarrow\text{Total amount }=6000(1.06)^6\\\\\Rightarrow\text{Total amount }=8511.11467354\approx8511.11`

Hence, the total amount he will pay =$8,511.11

Answer 2

For this specific problem, the total amount that Walter needs to pay is $8511.12. I am hoping that this answer has satisfied your query about and it will be able to help you, and if you’d like, feel free to ask another question.