select the correct answer.\ntotal amount = p (1 + i)^t\nryan has an eight - year loan for $6,000. he is…

select the correct answer.\ntotal amount = p (1 + i)^t\nryan 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.\na. $7,657.69\nb. $8,815.97\nc. $8,864.73

select the correct answer.\ntotal amount = p (1 + i)^t\nryan 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.\na. $7,657.69\nb. $8,815.97\nc. $8,864.73

Answer

Explanation:

Step1: Identify the values

$P = 6000$, $i=0.05$, $t = 8$

Step2: Substitute into the formula

$A=P(1 + i)^t=6000\times(1 + 0.05)^8$

Step3: Calculate $(1 + 0.05)^8$

$(1 + 0.05)^8=1.05^8\approx1.477455$

Step4: Calculate the total amount

$A = 6000\times1.477455=8864.73$

Answer:

C. $8,864.73$