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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 pay. $7,657.69 $8,815.97 $8,864.73

Respuesta :

Aliwohaish12
Hi there
The formula is
A=p (1+r)^t
A future value?
P present value 6000
R interest rate 0.05
T time 8 years

A=6,000×(1+0.05)^(8)
A=8,864.73

Hope it helps
carlosego

For this case we have an equation of the form:

[tex]y = A (b) ^t[/tex]

Where,

  • A: present value
  • b: rate of change
  • t: number of years
  • y: future value

Therefore, substituting the data of the problem in the given equation we have:

[tex]y = 6000 * (1.05) ^ 8\\y = 8864.73[/tex]

Answer:

the total amount that he will pay is $ 8,864.73