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Walter took out a $6,000 loan for six years. He is being charged 6 percent interest, compounded annually. Calculate the total amount he will pay.total amount = P (1 + i)t

Respuesta :

For this specific problem, the total amount that Walter needs to pay is $8511.12. I am hoping that this answer has satisfied your query about and it will be able to help you, and if you’d like, feel free to ask another question.

JeanaShupp

Answer: $8511.11

Step-by-step explanation:

Given: The Principle amount taken by Walter as loan (P)= $6,000

The rate of interest charged (i)= 6%=0.06

Time (t)= 6 years

To calculate the total amount he will pay, we use the given formula:-

[tex]\text{Total amount }= P (1 + i)^t[/tex]

Thus the total amount he will pay after 6 years is given by :-

[tex]\text{Total amount }= 6000 (1 + 0.06)^6\\\\\Rightarrow\text{Total amount }=6000(1.06)^6\\\\\Rightarrow\text{Total amount }=8511.11467354\approx8511.11[/tex]

Hence, the total amount he will pay =$8,511.11

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