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Ryan borrowed $8000 at a rate of 6%, compounded annually. Assuming he makes no payments, how much will he owe after 9 years?Do not round any intermediate computations, and round your answer to the nearest cent.

Ryan borrowed 8000 at a rate of 6 compounded annually Assuming he makes no payments how much will he owe after 9 yearsDo not round any intermediate computations class=

Respuesta :

For this question we use the formula for the compounded interest:

[tex]M=M_0(1+r)^t[/tex]

Where M_0 is the initial amount, r is the interest and t is the number of times interest is applied. Substituting M_0=$8000, r=0.06, and t=9 we get:

[tex]M=8000(1+0.06)^9\approx8000\cdot1.689478959\approx13515.83[/tex]

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