Find the amount paid for the loan.
$2400 at 10.5% for 5 years
its not right
To find the amount paid for a loan, you need to calculate the total amount including both the principal and the interest.
Step 1: Calculate the amount of interest paid per year.
Interest paid per year = Principal * interest rate
Interest paid per year = $2400 * 10.5% = $252
Step 2: Calculate the total amount of interest paid over the loan term.
Total interest paid = Interest paid per year * number of years
Total interest paid = $252 * 5 = $1260
Step 3: Calculate the total amount paid.
Total amount paid = Principal + Total interest paid
Total amount paid = $2400 + $1260 = $3660
Therefore, the amount paid for the loan is $3660.
To find the amount paid for a loan, you need to calculate the total amount of interest paid and add it to the principal amount borrowed. The formula to calculate the total interest paid and the amount paid for a loan is:
Total Interest = Principal × Rate × Time
Amount Paid = Principal + Total Interest
Let me calculate it for your specific scenario:
Principal (P) = $2400
Rate (R) = 10.5% (or 0.105 as a decimal)
Time (T) = 5 years
Using the formula above, we can calculate the total interest paid:
Total Interest = $2400 × 0.105 × 5
Total Interest = $1260
Now, let's calculate the amount paid:
Amount Paid = Principal + Total Interest
Amount Paid = $2400 + $1260
Amount Paid = $3660
Therefore, the amount paid for the loan would be $3660.
if simple interest 2400 + 5 [ 0.105 ] * [ 2400 ] = 2400+1260 = 3660
if compounded yearly 2400 [ 1.105 ]^5 = 3953.87