Answer: Total amount that Matthew's bank will receive $6312.40
Step-by-step explanation:
Since we have given that
Principal amount =$8000
Rate of interest = 6%
Time = 4 years
As we know the formula for " Compound Interest ":
\(A=P(1+\frac{r}{100})^n\)
where
A denotes Amount
P denote Principle
n denotes time
r denotes rate of interest
So, our equation becomes,
\(A=5000(1+\frac{6}{100})^4\\\\A=5000\times (1.06)^4\\\\A=5000\times 1.262\\\\A=\$6312.40\)
Hence, total amount that Matthew's bank will receive $6312.40.