24. Gabe borrows 8000 from a financial institution that charges 5% annual interest, compounded yearly, for 5 years. The amount of interest that he will need to pay at the end of the term is a 10210.25 c. 10240.68 b. 2210.25 d. 2240.68

This is a compound interest problem. Interest is calculated annually, which means it's compounded yearly. The formula we use to calculate compound interest is , where A is the total money accumulated after n years including interest, P is the principal amount (the initial amount of money), r is the annual interest rate in decimal form, n is the number of times interest is compounded per year, and t is the time in years. Here P = \$8000, r = 0.05 (5%), n = 1 (annual compounding), t = 5 years.At the end, we have to calculate gold difference between the money Gabe borrowed and the total amount Gabe will need to pay at the end. Which can be calculate using formula: .For this case I calculate the interest with \( A = 8000 * (1 + 0/1)^(1*5) = 10240.68 \), and .