Answer: the total amount after 6 years is 4690
Step-by-step explanation:
We would apply the formula for determining compound interest which is expressed as
A = P(1 + r/n)^nt
Where
A = total amount of the loan at the end of t years
r represents the interest rate.
n represents the periodic interval at which it was compounded.
P represents the principal or initial amount loaned.
From the information given,
P = 2900
r = 8% = 8/100 = 0.08
n = 12 because it was compounded 12 times in a year.
t = 6 years
Therefore,
A = 2900(1 + 0.08/12)^12 × 6
A = 2900(1 + 0.0067)^72
A = 2900(1.0067)^72
A = 4690
