Find the amount paid for the loan.
$2400 at 10.5% for 5 years
To find the amount paid for a loan, you can use the formula for calculating the total amount paid for a loan:
Total amount paid = Principal + Interest
Here's how to calculate it for your specific loan:
1. Calculate the interest amount:
Interest = Principal * Rate * Time
In this case:
Principal = $2400
Rate = 10.5% (convert to decimal by dividing by 100, so 10.5/100 = 0.105)
Time = 5 years
Interest = $2400 * 0.105 * 5
2. Add the interest amount to the principal:
Total amount paid = Principal + Interest
Now let's plug in the values and calculate:
Interest = $2400 * 0.105 * 5 = $1,260
Total amount paid = $2400 + $1,260
Therefore, the amount paid for the loan will be $2400 + $1,260 = $3,660.
don't you have a handy amortization formula?
Plug in your numbers.