Question

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
A. $7657.69
B. $8040.57
C. $8511.12

Answer 1

Answer

Find out the Calculate the total amount he will pay.

To prove

As given

Walter took out a $6,000 loan for six years.

He is being charged 6 percent interest, compounded annually.

Formula

$Total\ amount = P (1 + i)^{t}$

Where P is the principle, i is the interest in the decimal form, t is the time.

Here P =  $6,000

t = 6 years

6% is written in the decimal form.

$= \frac{6}{100}$

= 0.06

Put in the formula

$Total\ amount = 6000(1 + 0.06)^{6}$

$Total\ amount = 6000(1.06)^{6}$

 Total amount = $8511.12

Therefore the total amount be  $8511.12 .

Option (C) is correct.

Answer 2

The formula is
Total amount = P (1 + i)^t
Total amount ?
P the amount of the loan 6000
I interest rate 0.06
T time 6 years
Total amount=6,000×(1+0.06)^(6)
Total amount=8,511.12

So it's c

Hope it helps!