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

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

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.

= 0.06

Put in the formula

 Total amount = $8511.12

Therefore the total amount be  $8511.12 .

Option (C) is correct.