Question

What is the total amount that Matthew's bank will receive after lending him $8,000 for four years at an interest rate of 6 percent, compounded annually

Answer 1

he will receive 5,490

Answer 2

thats not correct. but thanks

Answer 3

Actually, it's Matthew's bank, not Matthew, that receives its money back.
At the onset, the bank lends Matt $8,000; Matt has to pay that back at the rate of 6% compounded annually.

Even so, you can still use the equation A=P(1+r)^t to calculate the amount that Matt's bank will eventually receive back from him.