marieiscool
9

# 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? total amount = P (1 + i)t

(1) Answers
dani2001

$\bf \qquad \textit{Compound Interest Earned Amount}\\\\ A=P\left(1+\frac{r}{n}\right)^{nt} \qquad \begin{cases} A=\textit{current amount}\\ P=\textit{original amount deposited}\to &\8000\\ r=rate\to 6\%\to \frac{6}{100}\to &0.06\\ n=\textit{times it compounds per year,}\to &1\\ t=years\to &4 \end{cases} \\\\\\ A=8000\left( 1+\frac{0.06}{1} \right)^{1\cdot 4}$

Add answer