Question

What is the total amount that Matthew's bank will receive after lending him $8,000 for four years at an interest rate of 6 percent, compounded annually? TA= P (1+i)^t

Answer 1

10,099.80

Explanation:

Given: The principal amount (P)= $8,000

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

Time = 4 years

The formula to calculate the compound amount in x years is given by :-

Then the compound amount received by Matthew after 4 years will be:_

Hence, the total amount that Matthew's bank will receive afeter 4 years =$10,099.80

Answer 2

$10,099.82

Explanation:

Given formula:
`\sf TA = P (1+i)^t`

where:

• TA = total amount
• P = principal amount
• i = interest rate (in decimal form)
• t = time (in years)

Given:

• P = $8,000
• i = 6% = 0.06
• t = 4 years

Substituting the given values into the formula:

`\implies \sf TA=8000(1+0.06)^4`

`\implies \sf TA=10099.81568`

Therefore, the total amount the Matthew's bank will receive is $10,099.82