Final answer:
Walter will pay a total of $8511.11 for a $6000 loan with 6% interest compounded annually over six years.
Step-by-step explanation:
The total amount Walter will pay for a $6000 loan at 6% interest compounded annually for six years can be calculated using the compound interest formula:
A = P(1 + r/n)^(nt)
Where:
A is the amount of money accumulated after n years, including interest.
P is the principal amount ($6000).
r is the annual interest rate (decimal) (0.06 for 6%).
n is the number of times that interest is compounded per year (1 for annually).
t is the time the money is invested or borrowed for, in years (6 years).
By substituting the given values into the formula, we get:
A = $6000(1 + 0.06/1)^(1*6) = $6000(1.06)^6
Calculating this gives us:
A = $6000 * 1.418519 = $8511.11
Thus, Walter will pay a total of $8511.11 at the end of six years.