Answer:
$8511.11
Step-by-step explanation:
Each year, the amount Walter owes is multiplied by 1.06, so at the end of 6 years, Walter owes 1.06^6 times the amount he borrowed.
he will pay $6,000×1.06^6 ≈ $8511.11
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At the end of the first year, Walter owes the original loan amount plus 6% interest. That total is ...
$6000 + 0.06×6000 = $6000×1.06
At the end of the following year, he owes 1.06 times that amount, or ...
6000×1.06²
The amount owed is multiplied by 1.06 each year until Walter pays off the loan.
