Question

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.

Answer 1

8864.73

Explanation:

A=p(1+r)^t

A future value ?

p the principle 6000

r interest rate 0.05

t time 8 years

A=6000×(1+0.05)^8

A=8864.73