select the correct answer. walter took out a $6,000 loan for six years. he is being charged 6 percent…

select the correct answer. 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

select the correct answer. 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

Explanation:

Step1: Identify the values

$P = 6000$, $i=0.06$, $t = 6$

Step2: Substitute into the formula

$A=P(1 + i)^t=6000\times(1 + 0.06)^6$

Step3: Calculate $(1 + 0.06)^6$

$(1 + 0.06)^6=1.06^6\approx1.418519$

Step4: Calculate the total amount

$A = 6000\times1.418519=8511.114\approx8511.12$

Answer:

C. $8511.12$