Ryan has an eight-year loan for $6,000. He is being charged an interest rate of 5 percent, compounded annually. Calculate the total amount that he will pay.

Question

anonymous · Answer

A= P(1+r/n)^nt

You will use this equation.

so you start off with 6,000 which will be P
then you will have to convert 5% to 0.05 (or a decimal) to fit into rate or r.
n is the compounding measurement, so monthly = 12 so yearly would be 1.
And t is the time he will have this loan and the amount of money he will have so t = 8. :)
So...

A= 6000(1+0.05/1)^1(8)
so you get 2.48 E30
Do scientific notation
and you have your answer ;p