hans borrowed $8000 at a rate of 14.5%, compounded annually. assuming he makes no payments, how much will he…

hans borrowed $8000 at a rate of 14.5%, compounded annually. assuming he makes no payments, how much will he owe after 6 years? do not round any intermediate computations, and round your answer to the nearest cent.

hans borrowed $8000 at a rate of 14.5%, compounded annually. assuming he makes no payments, how much will he owe after 6 years? do not round any intermediate computations, and round your answer to the nearest cent.

Answer

Explanation:

Step1: Identify compound - interest formula

The compound - interest formula is $A = P(1 + r)^t$, where $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), and $t$ is the number of years.

Step2: Convert the interest rate to decimal

Given $r = 14.5%=0.145$, $P=$8000$, and $t = 6$ years.

Step3: Substitute values into the formula

$A=8000\times(1 + 0.145)^6$. First, calculate $(1 + 0.145)^6=(1.145)^6$. $(1.145)^6=1.145\times1.145\times1.145\times1.145\times1.145\times1.145\approx2.287757$. Then, $A = 8000\times2.287757=$18302.056$.

Answer:

$$18302.06$