A bank offers a loan for $8,000 which earns 4.25% interest compounded annually. What is the correct formula to determine how much someone would owe the bank if they took out this $8,000 loan for 5 years?
A A = 8,000(0.0425)(5)
B A = 8,000(1 + 0.0425)5
C A = 8,000(0.0425)5
D A = 8,000(1 - 0.0425)5