Answer:
[tex]\$10,720[/tex]
Step-by-step explanation:
we know that
The simple interest formula is equal to
[tex]A=P(1+rt)[/tex]
where
A is the final loan amount
P is the initial loan amount
r is the rate of interest
t is Number of Time Periods
in this problem we have
[tex]t=4\ years\\ P=\$8,000\\ r=8.5\%=8.5/100=0.085[/tex]
substitute in the formula above
[tex]A=8,000(1+0.085*4)[/tex]
[tex]A=8,000(1.34)[/tex]
[tex]A=\$10,720[/tex]
