select the correct answer.\ntotal amount = p (1 + i)^t\nwallace took out a $5,000 loan for six years. he is…

select the correct answer.\ntotal amount = p (1 + i)^t\nwallace took out a $5,000 loan for six years. he is being charged 4 percent interest, compounded annually. calculate the total amount he will pay.\na. $6,326.60\nb. $6,312.38\nc. $6,077.53

select the correct answer.\ntotal amount = p (1 + i)^t\nwallace took out a $5,000 loan for six years. he is being charged 4 percent interest, compounded annually. calculate the total amount he will pay.\na. $6,326.60\nb. $6,312.38\nc. $6,077.53

Answer

Explanation:

Step1: Identify the values

$P = 5000$, $i=0.04$, $t = 6$

Step2: Substitute into the formula

$total\ amount=5000\times(1 + 0.04)^{6}$ $=5000\times1.04^{6}$ $=5000\times1.265319018$ $= 6326.59509\approx6326.60$

Answer:

A. $6,326.60$