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?

Question

anthonyfeliu · Answer

7,520 i think?

mathmale · Answer

The standard formula for the Amount after t years is$$A=P(1+r)^t$$
In this formula P=the initial amount (in dollars); r is the annual interest rate (as a decimal fraction), and t is the number of years.

Subst. the given numeric values into this formula and evaluate the formula for the final amount, A.