Ryan borrowed $8000 at a rate of 6%, compounded annually. Assuming he makes no payments, how much will he owe after 9 years?Do not round any intermediate computations, and round…

Question

asked Oct 6, 2023 92.2k views

1 Answer

Deke · Answer 1 · 2023-10-10T18:28:27+0000

For this question we use the formula for the compounded interest:

Where M_0 is the initial amount, r is the interest and t is the number of times interest is applied. Substituting M_0=$8000, r=0.06, and t=9 we get:

$M=8000(1+0.06)^9\approx8000\cdot1.689478959\approx13515.83$